Saturday, January 16, 2021
Home News Reports Finance ministry issues guidelines for interest waiver scheme during the lockdown period- Read details

Finance ministry issues guidelines for interest waiver scheme during the lockdown period- Read details

This scheme is not linked with the EMI moratorium announced by RBI, the ex-gratia payment under the scheme will be made regardless whether the borrower had availed the moratorium facility or not.

The union finance ministry has issued the detailed guidelines for the waiver of ‘interest on interest’ for loans that was announced earlier this month. The govt had decided to waive the compound interest on loans upto Rs 2 crore for a period of six months, from March to August.

It was announced that this compound interest waiver will be applicable to all borrowers un the approved categories, regardless of whether the moratorium was availed or not, which was announced by the Reserve Bank of India for the lockdown period.

Now according to the guidelines issued by the ministry, the interest waiver will be funded by the government in the form of ex-gratia payment. According to the “Scheme for grant
of ex-gratia payment of difference between compound interest and simple interest for six
months to borrowers in specified loan accounts (1.3.2020 to 31.8.2020)” issued by the ministry, the following categories of loans will be eligible for this interest waiver, provided that the outstanding loan amount does not exceed Rs 2 crore.

  1. MSME loans
  2. Education loans
  3. Housing loans
  4. Consumer durable loans
  5. Credit card dues
  6. Automobile loans
  7. Personal loans to professionals
  8. Omsumption loans

The terms and conditions of the scheme include:

The guidelines say that any borrower whose aggregate of all facilities with lending institutions is more than Rs. 2 crore (sanctioned limits or outstanding amount) will not be eligible for the waiver under this scheme.

The loan should not have turned into NPA (non-performing asset) as on 29th February 2020.

The loan must be availed from a banking company, a Public Sector Bank, a Co-operative Bank, a Regional Rural Bank, an All India Financial Institution, a Non-Banking Financial Company or a Housing Finance Company. Loans from Micro Finance Institutions are also eligible, provided it is a are member of a Self-Regulatory Organisation (SRO) recognised by RBI.

This scheme is not linked with the EMI moratorium announced by RBI, the ex-gratia payment under the scheme will be made regardless whether the borrower had availed the moratorium facility or not.

For this payment, the difference between compound interest and simple interest on the loan for the period from 1 March to 31 August will be calculated, and the same amount will be credited to the account of the borrowers. The rate of interest as on 29th February will be considered for this calculation.

The amount will be credited to the accounts of eligible borrowers by 5 November 2020.

The respective lending institutions will credit the difference between simple and compound interests to the accounts of eligible borrowers. After the payments are made, the lending institutions will claim reimbursement from the central government. Such claims will have to be submitted with designated officers or cells at State Bank of India. The govt has directed the SBI to assign designated officers or cells for this purpose. These cells will function as the nodal agency under the scheme.

While calculating the interest, the outstanding loan as on 29/02/2020 will be considered, and any payment after that date will be ignored. This will ensure that the scheme will be uniform for all, regardless of whether the moratorium facility was availed or not.

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

OpIndia Staffhttps://www.opindia.com
Staff reporter at OpIndia

Related Articles

Trending now

NDTV’s Ravish Kumar spreads fake news on paddy procurement by govt: Read full details of letter written by govt of India

PIB Additional Director General sent a letter to NDTV after Ravish Kumar used wrong data to accuse govt of lying about paddy procurement

Ashoka University removes links introducing Nidhi Razdan as Harvard professor, another institute quietly edits website: Details

The Ashoka University has announced that it is withdrawing tweets and posts related to Nidhi Razdan.

Nidhi Razdan Harvard fiasco: Former Director of Harvard’s Nieman Journalism Lab says the University does not offer journalism courses

Nidhi Razdan revealed that she had fallen for a phishing attack and that Harvard University had not really offered her a job.

Nidhi Razdan got ‘scammed’ into believing that she got a job from Harvard University: Here is what does not make sense in her story

While Nidhi Razdan says that the Harvard job she was offered was fake, last year she had said she is teaching in Harvard

Nidhi Razdan was scammed into believing she got an offer from the real Harvard University to become a professor of journalism: Details

Nidhi Razdan, formerly with NDTV, has revealed that she was the victim of a phishing attack and Harvard never came calling.

Pakistan aircraft PIA Boeing 777 seized by authorities, passengers stranded: Read why Malaysia acted against PIA

Malaysian authorities seized a Pakistan International Airlines (PIA) Boeing-777 at the Kuala Lumpur Airport.

Recently Popular

Twitter run-chase: Anti-Modi Indians vote for Imran Khan in ICC Twitter poll to make Virat Kohli lose

On Tuesday, the International Cricket Council (ICC) ran a poll to decide who is the best cricketer as a captain. The ICC poll included three legendary players and a Pakistani cricketer in the poll.

Vanishing barons: Alibaba founder Jack Ma and 4 other Chinese billionaires who had mysteriously gone missing

Several prominent elites from China who had ran afoul with the CCP had mysteriously disappeared from the public eye, including Jack Ma

Nidhi Razdan was scammed into believing she got an offer from the real Harvard University to become a professor of journalism: Details

Nidhi Razdan, formerly with NDTV, has revealed that she was the victim of a phishing attack and Harvard never came calling.

The Nidhi Razdan Harvard fiasco: A user had sounded off the alarms as early as September 2020

Nidhi Razdan revealed on Friday that she fell victim to a phishing scam and confirmed that she was never offered a job by Harvard.

NCERT says it has no information on source of claim made in textbook that Mughals had rebuilt temples after destroying them

NCERT History textbook says that Shahjahan and Aurangzeb have issued grants for rebuilding temples destroyed in war

From ‘no trust on BJP’s vaccine’ to ‘impotency’ to ‘they can cause death’, Samajwadi Party’s petty politics over COVID-19 vaccine just does not end

Samajwadi Party has been continuously trying to create an atmosphere of panic by spreading fake news about Covid-19 vaccine

NDTV’s Ravish Kumar spreads fake news on paddy procurement by govt: Read full details of letter written by govt of India

PIB Additional Director General sent a letter to NDTV after Ravish Kumar used wrong data to accuse govt of lying about paddy procurement

Ashoka University removes links introducing Nidhi Razdan as Harvard professor, another institute quietly edits website: Details

The Ashoka University has announced that it is withdrawing tweets and posts related to Nidhi Razdan.

Nidhi Razdan Harvard fiasco: Former Director of Harvard’s Nieman Journalism Lab says the University does not offer journalism courses

Nidhi Razdan revealed that she had fallen for a phishing attack and that Harvard University had not really offered her a job.

Fresh wave of coronavirus cases reported in Hebei province, massive quarantine centres being built by Chinese govt

China has transferred more than 20 thousand people to these makeshift centres at Shijiazhuang in Hebei province after fresh cases emerged in the North China province.

Nidhi Razdan got ‘scammed’ into believing that she got a job from Harvard University: Here is what does not make sense in her story

While Nidhi Razdan says that the Harvard job she was offered was fake, last year she had said she is teaching in Harvard

Rajasthan: SDM was seeking bribe during meeting where CM Gehlot spoke against corruption, arrested

SDM Pinky Meena, and SDM Pushkar Mittal, along with the agent of a former SP have been arrested for taking bribes over a national highway project.

‘Tit for Tat’, ‘Work of Art’: Netizens react to the Nidhi Razdan Harvard fiasco, question her logic

Netizens have been commenting on the Nidhi Razdan Harvard fiasco and pointed out the incredulousness of the whole situation.

Puja Bharti murder case from Ranchi: Facebook account of victim deleted, BJP questions police inaction

The BJP has warned that it will hit the streets to protest in case the culprits are not arrested soon.

The Nidhi Razdan Harvard fiasco: A user had sounded off the alarms as early as September 2020

Nidhi Razdan revealed on Friday that she fell victim to a phishing scam and confirmed that she was never offered a job by Harvard.

Connect with us

245,563FansLike
496,912FollowersFollow
22,700SubscribersSubscribe