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EMI payers during lockdown will get cashback till 5 November! Know which people will benefit

Loan Moratorium Cashback: In the Coronavirus, the government will give cashback to all EMI payers on time during the Loan Moratorium period. With this decision of the government, more than 40 percent of loans taken from banks and financial institutions and 75 percent of borrowers will benefit from the decision to give relief from cumulative interest i.e. ‘Interest-on-Interest’. At the same time, this will put a burden of about 7,500 crore rupees on the government exchequer. Along with this, the government has asked banks and financial institutions to add funds to the accounts of eligible borrowers by November 5. This amount will be equal to the difference between the cumulative interest and the simple interest during the six months of the grace period. This information is given in a report. Also Read – Bihar Assembly Election 2020: NDA crack! After PM Modi, Nitish also adopted ‘Ekla Chalo’ policy

The government had said before the Supreme Court on Friday that it would give exemption from cumulative interest on loans up to Rs 2 crore. Under this, banks will be made available the difference between cumulative interest and simple interest. He said that all the borrowers will get this facility. Whether or not he has taken advantage of the deferment given to the installment payment. But the condition for this is that the loan installment should be paid till the end of February i.e. the related loan is not a non-performing asset (NPA). Also Read – Oxford Covid Vaccine: Vaccine Supply To Be Launched In One Week In Britain, New Trial Success Found In Testing

Crisil said in a report on Monday, ‘This type of debt is 40 percent of the loan given by the institutional system (banks, financial institutions). This will benefit 75 per cent of the borrowers, while the government exchequer will have to bear a burden of about Rs 7,500 crore. ”It states that if this relief is given only to those who have returned the loans by the Reserve Bank due to the Kovid-19 epidemic. If we take advantage of the given deferment, then the burden on the state exchequer would be half. Also Read – Hathras Case: Hearing on Hathras case will now be done, Supreme Court will give verdict on Tuesday

The government has asked banks and financial institutions to add funds to the accounts of eligible borrowers by November 5. This amount will be equal to the difference between the cumulative interest and the simple interest during the six months of the grace period. According to Crisil, if the eligible borrowers who had taken loans up to Rs 2 crore were exempted from the interest-on-interest, along with the interest, the burden on the exchequer would have been Rs 1.5 lakh crore. This would have caused problems on the financial front for the government as well as the financial sector.

The scope of the rebate scheme covers MSME (micro, small and medium enterprises), education, home, consumer durables, credit cards, vehicles, personal loans, business and consumption loans.

(Input: agency)

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Kim Diaz

Kim recently joined the team, and she writes for the Headline column of the website. She has done major in English, and a having a diploma in Journalism.

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