Since the start of Covid, the RBI has been announcing loan restructuring schemes for pandemic-hit borrowers. The RBI first launched Resolution Framework 1.0 and, recently, on May 5, followed with Resolution Framework 2.0 in the wake of a resurgence of Covid. What is a loan restructuring? In banking parlance, a loan restructuring simply means relaxation given to a stressed borrowers who are unable to pay back their loan instalments due to genuine financial problems. Banks do this either by elongating the repayment period, reducing the interest rate or by offering a repayment holiday or all of these depending on the severity of cases.