loan restructuring
We provide loan restructuring for borrowers who have issues in the repayment of their existing loans or want to extend the loan tenor with or without enhanced credit facilities as per the requirements.
It is a strategic solution that helps borrowers renegotiate their loan terms to ensure financial stability while securing the lender repayments. By restructuring your loan, you can regain control over your finances while maintaining a positive relationship with your lender.
At Fund Source, we specialize in offering comprehensive restructuring services to help you navigate financial hurdles with confidence. Whether you’re dealing with cash flow constraints, high interest rates, or repayment difficulties, we provide tailored solutions to ease your financial burden.
What is loan restructuring?
Modifying the terms of an existing loan, such as tenor and interest rates, with or without an enhanced credit facility, is called loan restructuring. It is beneficial for borrowers who had difficulties repaying their existing loan so that they can avail of a new loan with additional funds to strengthen the business and secure the repayment of the new loan.
This can be done by sanctioning a new loan through which the previous loan is taken over & closed and an additional amount is provided for the working capital or buying a new machinery that churns out more profit in the business.
Key features
- Extended loan tenure
- Availability of working capital
- Changing the repayment structure (e.g., switching from bullet payments to EMIs)
- Converting unpaid interest into principal
- Getting moratoriums for the repayment
Who Can Take Advantage from Loan Restructuring?
It is beneficial for:
- Businesses: Struggling with temporary cash flow issues due to market fluctuations and now wants to infuse the additional working capital to stabilize the business.
- Capex Enhancement: Finance required to increase the plant capacity by way of installing new machinery, starting a new facility or simply looking for acquisition of a new asset.
- Real Estate Developers: Restarting the stalled projects or to fulfill the gap by the delays in revenue collection from buyers.
- Companies with NPA Accounts: Companies looking for finance to close their NPA accounts with the previous lender by way of a one-time settlement or without the OTS and avoid legal complications.
What are the benefits of loan restructuring?
Restructuring the loan offers multiple benefits:
- Improved cash flows: Managed monthly repayments by extended repayment tenors with the availability of a moratorium, which helps in improving the cash flows.
- Avoid Default: Closing the previous loan avoids the default with the previous lender.
- Improved Business: With an additional loan amount, one can use it for working capital or for improving the facility that makes a business stable and gives more profits.
- Better Credit Score: Borrower credit score will improve with timely repayment and a new repayment track.
