CURRENT AFFAIRS

Detailed explanation-1: -The important scheme which was launched to restructure the MSME loan was the credit guarantee scheme for subordinate debt (CGSSD). In this, Rs 20, 000 crore scheme was the main actual initiative for restructuring of MSMEs. “Most of the restructuring happened in quarter 4 of 2021 and the current financial year.

Detailed explanation-2: -Individual borrowers who have already had their accounts restructured may apply for loan restructuring 2.0 (if the increase in duration is not more than 24 months).

Detailed explanation-3: -The debt restructuring procedure typically entails asking banks to agree to cut interest rates on loans or extend the period the individual or company’s payments are due. These acts improve an individual’s and a company’s chances of repaying debts and staying in business.

Detailed explanation-4: -What is Home Loan Restructuring? In simple terms, home loan restructuring is an option given to borrowers facing a financial crunch due to any reason. This allows them to renegotiate with the lender and change the terms of the home loan to avoid any instance of default and being penalised.