State Bank of India (SBI) on Monday announced the details of its resolution framework to restructure Covid-19 related stress loans.

Corporate borrowers will have to provide a personal guarantee of the promoters or a pledge of their shares.

Individuals seeking a restructuring of their loans will have to pay an additional interest of 0.35 per cent annually over and above the current pricing for the remaining tenure of the loan though they will not be subject to any processing fee.

The country’s largest bank also launched a facility on its website to help retail customers check their eligibility for the one-time loan restructuring.

Last month, the RBI had announced a one-time restructuring scheme for personal loans and corporate borrowers affected by the pandemic. This will apply to only those accounts that existed in banks’ books as on March 1, 2020. Another crucial condition is that the accounts should be standard (performing) and also not in default for more than 30 days as on March 1, 2020.

SBI managing director (retail & digital banking) C. S. Setty said while retail customers can check their eligibility, if found eligible they will have to visit the respective branches to complete the other formalities such as the signing of papers.

As of now, around 3,500 retail customers of the bank have accessed the portal and of them 111 are eligible and have got their reference number generated, he said.

The bank’s retail customer will be asked to fill his or her account number in the relevant segment on its website. After the completion of OTP validation and keying in the requisite information, customers will get to know their eligibility and receive a reference number. This reference number will be valid for 30 days and within which time customers can visit the branch to complete the required formalities.

An individual borrower will be considered as affected by the Covid-19 pandemic if his or her salary in August 2020 got reduced compared with February 2020, or there is a reduction/suspension in salary during the lockdown period. The individual can get home and other related loans, education, auto and personal loans restructured. The tenure of the loan can be extended for maximum 24 months under the framework for Covid -19 related stress.

The restructuring process will be complete after the verification of documents and execution of simple documents at the branch or the processing centre. Once an application is submitted, it will be processed within 7-10 working days.

The customer will have to upload or submit documents like salary slips for the month of February and latest salary slip apart from a declaration of estimated salary or income immediately after the end of the desired moratorium period (maximum 24 months) or a letter of discharge from job in case of job loss.

However, customers whose application has been accepted will be required to pay additional interest of 0.35 per cent per annum over and above their current pricing for the remaining tenure of the loan. SBI said that this is to offset partial cost of additional provisions required to be made.

For non-personal borrowers, SBI said that in case of unlisted entities, personal guarantee of the promoters will have to be furnished and for listed companies, promoters will have to pledge their shares. In these cases, a processing fee or upfront fee of 0.25 per cent of the `aggregate limits’ will be payable. SBI added that for loans with aggregate exposure of Rs 1500 crore and above from the banking system, last date for submitting application is November 15 and for others, the last date to apply for relief under the November 30.