Debt Restructuring: A Strategic Solution for Managing Financial Obligations and Avoiding Default
A Comprehensive Strategy for Financial Stability, Debt Relief, and Long-Term Sustainability.
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Debt Restructuring
Reorganise existing loans — lower rates, longer tenure, avoid default.
- Debt Restructuring (modify terms of existing loans)
- Debt-for-equity swap
- Interest rate reduction / due date extension
- 20+ banks & NBFCs
- Quick approval & disbursal
- Bank-grade data security
- Compare with zero credit-score impact
Debt Restructuring options
The debt restructuring products we help you compare and apply for across our partnered banks and NBFCs.
- Debt Restructuring (modify terms of existing loans)
- Debt-for-equity swap
- Interest rate reduction / due date extension
Key features & benefits
Available to companies, individuals, and even countries
Reduce interest rates or extend due dates
Less expensive alternative to bankruptcy
Benefits both borrower and lender
Debt Restructuring interest rates
Indicative debt restructuring rates, processing fees and loan amounts across our partnered banks and NBFCs. Final terms are set by the lender on approval.
| Bank / NBFC | Interest Rate | Processing Fee | Loan Amount | Apply |
|---|---|---|---|---|
| ICICI Bank | 08.65% to 09.25% | 10k + GST to 0.25% + GST | 5 lacs to 15 crore | Apply |
| Kotak Mahindra Bank | 08.65% to 09.25% | 10k + GST to 0.25% + GST | 5 lacs to 15 crore | Apply |
| HDFC Bank | 08.65% to 09.25% | 10k + GST to 0.25% + GST | 5 lacs to 15 crore | Apply |
| Axis Bank | 08.65% to 09.25% | 10k + GST to 0.25% + GST | 5 lacs to 15 crore | Apply |
| IDFC Bank | 09.25% to 10.50% | 0.50% + GST | Rs.10 L to Rs.15 cr | Apply |
| Godrej Capital | 09.25% to 11.50% | 10k + GST to 0.25% + GST | 5 lacs to 15 crore | Apply |
| L&T Housing Finance | 08.65% to 09.25% | 10k + GST to 0.25% + GST | 5 lacs to 15 crore | Apply |
| Axis Finance | 10.50% to 12.50% | 0.75% to 1% + GST | 20 lacs to 15 crore | Apply |
| Bajaj Finance | 08.50% to 9.00% | 10k + GST to 0.25% + GST | 20 lacs to 10 crore | Apply |
| Piramal | 10.5% to 12.50% | 1% + GST | 10 lakh to 2 crore | Apply |
| ICICI HFC | 09.50% to 12.00% | 0.75% to 1% + GST | 10 lakh to 2 crore | Apply |
ICICI Bank
Apply- Interest Rate
- 08.65% to 09.25%
- Processing Fee
- 10k + GST to 0.25% + GST
- Loan Amount
- 5 lacs to 15 crore
Kotak Mahindra Bank
Apply- Interest Rate
- 08.65% to 09.25%
- Processing Fee
- 10k + GST to 0.25% + GST
- Loan Amount
- 5 lacs to 15 crore
HDFC Bank
Apply- Interest Rate
- 08.65% to 09.25%
- Processing Fee
- 10k + GST to 0.25% + GST
- Loan Amount
- 5 lacs to 15 crore
Axis Bank
Apply- Interest Rate
- 08.65% to 09.25%
- Processing Fee
- 10k + GST to 0.25% + GST
- Loan Amount
- 5 lacs to 15 crore
IDFC Bank
Apply- Interest Rate
- 09.25% to 10.50%
- Processing Fee
- 0.50% + GST
- Loan Amount
- Rs.10 L to Rs.15 cr
Godrej Capital
Apply- Interest Rate
- 09.25% to 11.50%
- Processing Fee
- 10k + GST to 0.25% + GST
- Loan Amount
- 5 lacs to 15 crore
L&T Housing Finance
Apply- Interest Rate
- 08.65% to 09.25%
- Processing Fee
- 10k + GST to 0.25% + GST
- Loan Amount
- 5 lacs to 15 crore
Axis Finance
Apply- Interest Rate
- 10.50% to 12.50%
- Processing Fee
- 0.75% to 1% + GST
- Loan Amount
- 20 lacs to 15 crore
Bajaj Finance
Apply- Interest Rate
- 08.50% to 9.00%
- Processing Fee
- 10k + GST to 0.25% + GST
- Loan Amount
- 20 lacs to 10 crore
Piramal
Apply- Interest Rate
- 10.5% to 12.50%
- Processing Fee
- 1% + GST
- Loan Amount
- 10 lakh to 2 crore
ICICI HFC
Apply- Interest Rate
- 09.50% to 12.00%
- Processing Fee
- 0.75% to 1% + GST
- Loan Amount
- 10 lakh to 2 crore
Rates are indicative and lender-provided; they vary by profile, amount and tenure. PakkaLoan does not lend directly.
Eligibility & documents
Check that you meet the criteria and keep these documents handy for a faster approval.
Eligibility criteria
- Age: 21-60 years (Salaried), 25-65 years (Self-Employed)
- Active employment/business for at least 2 years
- Credit score of 650+ (may vary by lender)
- Proof of financial hardship or reduced income
- No defaults in the past 12 months
- Recovery plan required for businesses
- Collateral may be needed for higher loan amounts
Documents required
- Proof of Identity/Residence
- Documents confirming identity and address, such as Passport, Aadhar, or Utility Bills
- Proof of Income
- Recent salary slips, ITR, or bank statements
- Property-Related Documents
- Title deed, property tax receipts, or sale deed
- Proof of Business (for Self-Employed)
- Business registration documents, GST registration, etc.
- Account Statement
- Bank account statement for the last 6 months
- Existing Loans Statement
- Statement of accounts for all existing loans
Not sure which offer fits?
Get a free, no-obligation callback from a loan expert who can compare debt restructuring offers across our partnered banks and NBFCs and help you pick the right one. We forward your enquiry to a lending partner — we don't lend or decide approvals ourselves.
Request a callback
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Fees & charges
The fees and charges usually vary from lender to lender and from case to case.
| Particulars | Charges |
|---|---|
| Loan Processing Fees | 0.5% to 4% of Loan Amount |
| Loan Cancellation | Usually 3000 to 5% of Loan Amount |
| Stamp Duty Charges | As per the Value of the Property and State Tax |
| Legal Fees | As per actual |
| Penal Charges | Usually 2% per month |
| EMI / Cheque Bounce | Approx 499/- to 599/- |
Loan Processing Fees
0.5% to 4% of Loan Amount
Loan Cancellation
Usually 3000 to 5% of Loan Amount
Stamp Duty Charges
As per the Value of the Property and State Tax
Legal Fees
As per actual
Penal Charges
Usually 2% per month
EMI / Cheque Bounce
Approx 499/- to 599/-
Estimate your debt restructuring EMI
Seeded with indicative debt restructuring terms. Adjust the amount, rate and tenure to see your monthly instalment and total interest.
Debt Restructuring EMI calculator
Drag the sliders to estimate your monthly instalment, total interest and total amount payable. Figures are indicative.
- Principal79%
- Interest21%
Monthly EMI
₹15,81,440
over 60 monthly installments
Principal amount
₹7,53,00,000
Total interest
₹1,95,86,409
20.6% of total payment
Total payable
₹9,48,86,409
principal + interest
Checking offers won't affect your credit score.
Understanding your debt restructuring
Plain-English context to help you compare offers with confidence. General guidance only — your final terms are always set by the lender on approval.
How consolidating multiple debts works
One common form of restructuring is folding several separate borrowings into a single facility with one repayment schedule. Instead of tracking many due dates and rates, you manage a single EMI, which can simplify your finances and may lower the overall cost if the new terms are better. Whether consolidation helps depends on the rate and tenure offered versus what you currently pay, so it's worth comparing the totals rather than just the monthly figure.
Lower EMI can mean more total interest
Restructuring often eases the monthly burden by extending the tenure or reducing the rate. Stretching the tenure makes each EMI smaller, but because you pay interest over a longer period, the total interest can rise even as monthly cash flow improves. Weigh the immediate relief against the lifetime cost — the calculator above can help you see this trade-off before you decide.
Act early and talk to your lender
Restructuring is usually most effective when you raise it before payments are seriously overdue, while you still have room to negotiate revised terms. Lenders generally prefer a workable repayment plan to a default, so opening the conversation early can widen your options. Any restructuring is agreed directly between you and the lender, and it may be noted on your credit record; PakkaLoan only helps connect you and does not negotiate or guarantee terms.
Debt Restructuring FAQs
Common questions about debt restructuring eligibility, rates, tenure and repayment.
Debt restructuring is a process that allows businesses or individuals facing financial difficulties to reorganize their debts. It involves modifying the terms of existing loans to make repayments more manageable, such as extending repayment periods or lowering interest rates.
Eligibility for debt restructuring depends on your financial situation and the lender's policies. It is typically available for individuals or businesses facing financial difficulties, with a proven inability to meet existing debt obligations under current terms.
Debts that can typically be restructured include business loans, personal loans, credit card debt, and sometimes mortgage loans. The terms and availability depend on the lender and the borrower's circumstances.
Debt restructuring involves modifying the terms of existing loans to make repayment more manageable. Debt consolidation, on the other hand, involves combining multiple loans into a single loan with a new interest rate and repayment term.
Yes, debt restructuring may impact your credit score as it indicates financial stress. However, it can be a better alternative to defaulting on payments, which would have a more severe effect on your creditworthiness.
The debt restructuring process usually involves negotiating new loan terms with your lender, including reduced interest rates or extended repayment periods. After an agreement is reached, the lender modifies the loan terms to reflect the changes.
Debt restructuring can provide relief by reducing the monthly repayment burden, extending the loan tenure, or lowering the interest rate. It allows borrowers to avoid defaulting on their loans and can improve cash flow for businesses and individuals.
Yes, many lenders offer debt restructuring even if your loan is in default. The goal of restructuring is to help you manage your debt more effectively and avoid further financial distress. However, approval depends on the lender's policies and your financial situation. It is important to communicate with your lender as early as possible to explore restructuring options before the situation worsens.
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Important — please read
PakkaLoan is a digital loan-aggregation platform that helps users discover and apply for loan offers from partnered banks and NBFCs. PakkaLoan does not lend directly — final approval, interest rates and disbursal are determined solely by the respective lending partner. Loan offers are subject to standard credit-approval processes.
Debt Restructuring interest rates, processing fees, eligibility and loan amounts shown are indicative, provided by partnered banks & NBFCs, and vary by your profile, amount and tenure. The EMI calculator gives an estimate only. PakkaLoan does not lend, charge borrowers a fee, guarantee approval, or pull your credit-bureau score; your details are shared with lending partners only with your consent.
Apply for your Debt Restructuring today
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