Loan Restructuring FAQs

How is my ZestMoney loan repayment being made more affordable for me?

As you are aware, ZestMoney is a facilitator between our lending partners and you, our customer, so the process of taking a loan is more convenient and efficient. 

Lenders can reduce your monthly EMI payment amount into smaller instalments by increasing the remaining tenure of your loan – in other words, your loan will be restructured. For example, if you have an existing loan of Rs. 10,000 and your current EMI amount is Rs. 1,111 with 6 instalments pending, if you choose to reduce your EMI amount in this way then you could potentially end up paying only Rs. 740  with 9 instalments pending.

Why should I continue to make my EMI payments in this way?

Not making your monthly EMI payments means that you’re essentially accumulating debt. This increases financial pressure on you as time progresses. Restructuring your loan, on the other hand, reduces your monthly financial burden and allows you to continue paying your EMIs. This might be beneficial to you if you believe you will not be able to make your regular EMI payments as you did before and as a result, will not be able to repay your loan on time. 

As you are aware, not fully repaying your loan on time i.e. ‘defaulting’ on your loan has a strong negative impact on your credit history. In order to avoid this negative impact, it is better to keep paying off your loan by reducing your monthly payment amount with your lender.

What are some other benefits of continuing to make my EMI payments with ZestMoney?

As explained above, continuing to pay your EMIs may be beneficial to you and is a more financially sound decision in the long run. Since your monthly instalment amount reduces, you may be able to manage your cash flow and plan your future finances more easily as well. 

Another attractive benefit of doing so is that you become eligible to have your ZestMoney credit limit reactivated and transact again with our 3000+ merchant partners. Having access to a line of credit during such times can be an invaluable financial resource.

Does it cost me anything to avail this option as provided by my lender? Will my interest rate change for the restructured loan?

Yes, you will be charged a nominal processing fee in order to reduce your monthly EMI payment amounts. This is similar to the processing fee you first paid when signing up for a loan from your lender through ZestMoney. There will be no additional charges or upfront payments required beyond that. 

Your interest rate on the restructured loan will remain the same as that of your original loan. You will continue to make your reduced monthly EMI payments in the same manner as before.

Will I still be eligible for interest cashback that was part of the terms and conditions of the original loan?

Should you choose to reduce your monthly EMI payment under the loan restructuring scheme,  you would no longer be able to avail interest cashback on the new loan since it would now be repaid under different terms and conditions than what was originally agreed upon on the original loan.

Once my loan is restructured, will I still be able to revert back to the payment structure as well as other terms and conditions of the original loan? Will I be able to cancel the new loan and get a refund?

No, once your loan is restructured you will not be able to revert back to the original loan payment structure or other terms and conditions, nor will you be able to cancel the new loan and receive a refund. Restructuring is final and non-refundable.

Will restructuring affect my credit report/score?

Your restructured loan will be tagged as such on your CIBIL report. This may have an adverse impact compared to making your original EMI payments (without the restructuring) on time. However, this impact is comparatively less since you will continue to make your monthly EMI payments and your CIBIL report will reflect that. Defaulting on a loan, on the other hand, results in a ‘default’ tag on your CIBIL report, which is worse for your credit score in the long run as there will be no monthly payments reported.

If I request for my loan payments to be restructured, will it certainly be approved?

No, the final decision on whether your loan can be restructured as per your request will remain with your lender. 

How do I make my new ‘reduced’ EMI payments?

You will be able to make your EMI payments as you always have. If you have a NACH/eNACH/SI (standing instructions) set up with ZestMoney, your EMI payment will get auto-debited directly from your bank account. You can also log in to your My Accounts section and pay manually using any of the payment options available, like UPI, debit card, net banking, etc.

What should I do if I have a complaint regarding my restructured loan?

We are here to ensure you have a seamless experience in availing this option and repaying your loan. Please reach out to us at help@zestmoney.in or call us at +91-6269000097.