Question

Restructuring of loan will be a necessity in the point of view.

• A. Borrowers
• B. Regulators
• C. Lenders
• D. Governments

Answer 1

Answer:

C. Lenders

Restructuring of loans usually happens when borrowers are unable to repay loans as per the original terms. From the lender’s point of view (banks or financial institutions), restructuring becomes necessary to avoid default, recover funds in a feasible manner, and reduce non-performing assets (NPAs). While borrowers may welcome restructuring, it is primarily a necessity for lenders, not regulators or government, though they may influence policies. So the necessity arises mainly for lenders.