debt rescheduling
{{short description|Form of debt modification}}
{{Personal finance}}
Debt rescheduling is the lengthening of the time of debt repayment by restructuring the terms of an existing loan.{{cite book
| last1 = O'Sullivan
| first1 = Arthur
| authorlink = Arthur O'Sullivan (economist)
| first2 = Steven M. | last2 = Sheffrin
| title = Economics: Principles in Action
| url = https://archive.org/details/economicsprincip00osul
| url-access = limited
| publisher = Pearson Prentice Hall
| year = 2003
| location = Upper Saddle River, New Jersey 07458
| pages = [https://archive.org/details/economicsprincip00osul/page/n504 488]
| isbn = 0-13-063085-3}}
Types of resecheduling
In retail banking, the debt rescheduling can be applied for personal loans given to individuals as education loan, consumer credit, mortgage loan and loans given for making investment in financial assets such as equity shares, debenture, and bond (finance).{{Cite web|last=Bhasin|first=Tinesh|date=2020-08-06|title=RBI allows banks to restructure retail loans|url=https://www.livemint.com/money/personal-finance/rbi-allows-banks-to-restructure-retail-loans-11596704487419.html|access-date=2021-04-27|website=mint|language=en}} In North America and Europe, there are the portals which offers loan rescheduling/restructuring/consolidation via peer-to-peer lending marketplace such as Prosper Marketplace and LendingClub.{{Cite journal|last=Verstein|first=Andrew|date=2011-11-21|title=The Misregulation of Person-to-Person Lending|url=https://papers.ssrn.com/abstract=1823763|language=en|location=Rochester, NY|ssrn=1823763 }}{{Cite web|title=Umschuldungskredit|url=https://www.kredit-vergleich.com/umschuldungskredit/|access-date=2021-04-27|website=Kreditvergleich|language=de-DE}}
= Approaches; =
- Reduce payment amounts by extending the payment period and increasing the number of payments.{{Cite web|title=What is debt rescheduling?|url=https://help.october.eu/en/articles/2788481-what-is-debt-rescheduling|access-date=2021-04-15|website=help.october.eu|language=en}}
- Pause payments by adding debt moratorium period in a loan term during which the borrower is not required to make any repayment but it increases the amount of the monthly instalments.{{Cite web|title=OECD Glossary of Statistical Terms - Debt rescheduling Definition|url=https://stats.oecd.org/glossary/detail.asp?ID=5926|access-date=2021-04-15|website=stats.oecd.org}}