A clearer picture on the availment of the loan restructuring scheme is likely to emerge by the month-end as banks are still awaiting collection data and are also hoping for a verdict from the Supreme Court on the issue of moratorium interest.

Not many takers

Meanwhile, even as banks, NBFCs and housing finance companies have begun rolling out retail and home loan recast schemes, most of them do not expect too many borrowers to avail the facility.

“As of now, discussions have begun with borrowers who want to avail the recast. But everyone is hoping for more clarity after the Supreme Court hearing on September 28,” said a senior banker with a private sector lender.

Like State Bank of India, most lenders are also seeking the details and proof of Covid-related job loss or salary reduction.

“It is the same for both retail and corporate borrowers. They have to approach the bank and discuss the recast. It is not a free lunch,” said another banker, adding that bank and salary statements and GST returns are being examined.

Borrowers wary

Bankers said many borrowers, too, have informed them that they would await the Supreme Court hearing before taking a decision on whether they would want to go in for a loan recast.

However, with the number of borrowers taking the previous loan moratoriums steadily declining, most lenders do not expect a huge turnout for the loan recast. Lack of awareness about the scheme is also a factor.

“We have prepared a format for customers who want to take the loan recast. It is going on well. We expect about 2 per cent to 3 per centof the borrowers to avail the scheme,” said Deo Shankar Tripathi, Managing Director and CEO, Aadhar Housing Finance, adding that only 5 per cent of its borrowers availed the full six-month moratorium.

“We would like to wait and watch the behaviour of the customer and repayment culture in September to take action. Not all customers would require restructuring. A very small percentage of our overall portfolio will require restructuring,” said Ramesh Iyer, Vice Chairman and Managing Director, Mahindra Finance. He said they would like to interact with the customer and understand what kind of restructuring they are looking for.

Shrikant Shrivastava, Chief Risk Officer, India Mortgage Guarantee Corporation, said that most lenders are still waiting for collections for September and are collating data. “This time to balance the interest of lenders and borrowers, it is being seen who are the borrowers who genuinely require restructuring,” he said, adding that it is easier to do so for salaried customers, while it may be challenging for self-employed and low-ticket borrowers.

CS Setty, Managing Director (Retail and Digital Banking), State Bank of India, had said that people are yet to approach the lender in a large number for the scheme. “Around 3,500 people have accessed the portal, of which, 111 people were eligible,” he had said.