As a festival gift to borrowers, the Finance Ministry approved guidelines for a scheme to implement the interest waiver scheme of loans up to Rs 2 crore.
The government on late Friday night announced that waiver of interest on interest for loans up to Rs 2 crore irrespective of whether moratorium was availed or not. Housing loans, education loans, credit card dues, auto loans, MSME loans, consumer durable loans, and consumption loans are covered under the scheme.
The apex court on October 14 directed the Centre to implement “as soon as possible” interest waiver on loans of up to Rs 2 crore under the RBI moratorium scheme in view of the COVID-19 pandemic saying the common man’s Diwali is in the government’s hands.
“Borrowers who have loan accounts having sanctioned limits and outstanding amount of not exceeding Rs 2 crore (aggregate of all facilities with lending institutions) as on February 29 shall be eligible for the scheme,” it said.
As per the scheme, the lending institutions shall credit the difference between compound interest and simple interest with regard to the eligible borrowers in respective accounts for the said period irrespective of whether the borrower fully or partially availed moratorium on repayment of loan announced by the RBI on March 27, 2020.
The scheme is also applicable to those who have not availed the moratorium scheme and continued with the repayment of loans.