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Loan Moratorium: The Finance Ministry has issued this guideline regarding interest waiver on loans during loan moratorium.

EMI Moratorium Update: If you too have taken Loan Moratorium during the Corona period, then this news is of your use. The Finance Ministry has approved the guideline for exemption from interest related to deferment granted by the Reserve Bank of India (RBI) due to the COVID-19 crisis. Under this, the government will pay an amount equal to the difference between the cumulative interest i.e. ‘interest on interest’ and the simple interest during the deferment granted for six months on a loan up to Rs 2 crore. Also Read – Coronavirus In Children: Big disclosure about symptoms of Kovid in children, definitely read …

The Supreme Court had directed the Central Government to implement the interest rebate scheme on loans up to Rs 2 crore as soon as possible under the moratorium given by the RBI. After that this guideline has come. According to the guidelines issued by the Department of Financial Services, borrowers can avail the benefit of the scheme on the respective loan account. This benefit is for the period from March 1, 2020 to August 31, 2020. Also Read – Corona Virus Detection Data Reaches 10 Crore, Testing 45 Crore People In 45 Days

According to this, the borrowers on whom the total loan till February 29 does not exceed Rs 2 crore, will be eligible to avail the scheme. Under this scheme, home loans, education loans, credit card dues, vehicle loans, MSME (micro, small and medium enterprises), loans taken for sustainable consumer salmon and loans for consumption will come. Also Read – Corona epidemic will remain among us for next 20 years, claims CEO of SEERUM

According to the guidelines, banks and financial institutions will put the difference between interest and simple interest over interest during the deferment period in the loan account of eligible borrowers. This is for all eligible lenders, who have taken advantage of the exemption given by the RBI for loan waiver in full or in part under the scheme announced on March 27, 2020. Financial institutions will claim the central government for the payment of the money by putting it in the account of the concerned borrower. According to sources, the implementation of this scheme will cost the government exchequer 6,500 crore rupees.

In fact, due to the Corona crisis, many people were not in a position to repay the loan EMI. In view of this, on the RBI’s order, the banks were given an extension of the first three months for not paying EMI and later it was increased to 6 months. But the biggest problem was the extra charge that the Moratorium could replace. The relief given by the Center means that people who are taking benefit of loan moratorium will no longer have to pay extra money on interest.

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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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