Loan Moratorium: Who will get the benefit of interest waiver, how much and when, the government answers all the questions

Interest Waiver on Loan Moratorium: A calculus has been issued by the Ministry of Finance to give relief on interest on loan moratorium. The ministry has said that ‘the loan outstanding on February 29 under the ex-gratia relief scheme will be considered as the reference amount for the difference between compounding and simple interest. This difference will be calculated on the basis of this outstanding balance. The Finance Ministry has issued an FAQ about this on Wednesday and has given information about it.

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 two crore rupees. Under this scheme, the interest on interest on loans up to two crore rupees will be waived for six months from March 1, 2020.

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The Reserve Bank of India (RBI) had on Tuesday asked all lending institutions, including the NBFC, to implement the interest waiver scheme on the recently announced interest for loans up to Rs 2 crore for a 6-month loan moratorium period, till 5 November. Do.

The government last Friday announced a grace or grant for six months to pay the difference between compound interest and simple interest for eligible loan accounts. The government has asked all banks to deposit the difference between compound interest and simple interest till November 5 in the account of the borrowers. With this relief, the exchequer is likely to bear a burden of Rs 6500 crore.

In the FAQ issued by the Finance Ministry on the interest waiver scheme on interest, it said that under this MSME loan, education loan, housing loan, durable consumer loan, credit card dues, auto loan, personal loan to professionals and consumption loan will be given relief.

The benefit of this scheme will be available on such loan accounts, in which the outstanding loan will not be more than two crore rupees. This will include loans taken from all lending institutions. Such loan accounts should be standard in the books of accounts of lending institutions by the reference date of 29 February 2020. That is, the loan installment has been paid till the end of February, that is, the related loan should not be NPA.

The Finance Ministry has said that a period of six months or 184 days will be counted from March 1 to August 21, 2020 for refunds. This ex-gratia amount will be transferred to the accounts of all eligible borrowers. All the borrowers who take partial benefit or full benefit of the loan moratorium announced by the Reserve Bank on 27 March 2020, as well as consumers who have not availed the loan moratorium, will get the benefit of the interest waiver scheme.

Apart from this, there will be no need to apply to avail benefits. Under the scheme, lending institutions will have to deposit the difference between compound interest and simple interest in the accounts of eligible lenders.

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