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[Banking] Restructured Loan Account Meaning

What is a restructured loan account in banking terms?

A restructured account is one where the bank, grants to the borrower concessions that the bank would not otherwise consider.

Restructuring would normally involve modification of terms of the advances/securities, which would generally include, among others, alteration of repayment period/ repayable amount/ the amount of installments and rate of interest.

It is a mechanism to nurture an otherwise viable unit, which has been adversely impacted, back to health.

(Source: RBI)

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