Big news: farmers will not get the benefit of interest-on-interest forgiveness scheme, know its reason

The Ministry of Finance made it clear that a total of eight areas come under this scheme. Crop and tractor loans come under agriculture and allied activities. Which is not included in this plan. Apart from this, this relief will also not be available on loans taken on Fixed Deposits, Shares and Bonds.

new Delhi. The Finance Ministry on Thursday clarified that interest-on-interest waiver scheme will not be available on loans related to agriculture and allied activities. The Finance Ministry on Thursday released additional FAQs (Frequently Asked Questions) on the ‘Grace Relief Payment Scheme’ related to the payment of the difference between compounding and simple interest. At the same time, the Finance Ministry said that the borrowers will get the benefit of this scheme for arrears on credit card till February 29.

Also Read: FD: Know which banks are still paying more than 7 % interest

The Ministry had released the FAQ – FAQ states that, the benchmark rate for this relief will be the contract rate. Which is used by credit card issuers for EMI loans. The Finance Ministry clarified that a total of eight areas fall under this scheme. Crop and tractor loan comes under agriculture and allied activities. Which is not included in this plan. The Reserve Bank of India (RBI) had asked all lending institutions on Tuesday to implement the interest waiver scheme on recently announced interest for loans up to Rs 2 crore. Let us tell you that under this scheme, the interest on the loan up to two crore rupees will be waived for six months from March 1, 2020.

Who will benefit? – The benefit of this scheme of the government will be given to those customers who did not opt ​​for the Moratorium. Apart from this, they have loans up to Rs 2 crore. It has been asked to put this amount in the loan account of the customers by 5 November. Later banks and financial institutions can claim this amount from the government.

Which people will not get the benefit of the scheme? – Tell those who have paid the EMI of the loan till February 2020, only those people will get benefit, those customers whose accounts have been classified as non-performing assets (NPAs) by the end of February will benefit those people. not available. Apart from this, this relief will not be available for loans taken on fixed deposits, shares and bonds.

Relief will be given on these loans – In the FAQ issued by the Finance Ministry on the interest waiver scheme on interest, it will be provided that relief will be given on MSME loan, education loan, home loan, credit card dues, auto loan, personal loan.

75 percent customers will benefit – According to rating agency Crisil, about 75 percent customers will benefit from the rebate on compound interest on small loans. This will put a burden of about Rs 7,500 crore on the government exchequer.

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