A Restructured Loan is a loan whose original terms are modified (such as interest rate, tenure, or EMI) to make repayment easier for the borrower facing financial difficulty.
Loan restructuring is offered when a borrower is unable to repay as per original terms. The lender may revise conditions to avoid default and improve recovery chances.
In India, restructuring frameworks are guided by the Reserve Bank of India.
"A borrower with high EMI gets the tenure extended from 5 to 10 years, reducing monthly payments—this is loan restructuring."