The Finance Ministry has said that the loan outstanding on February 29 will be considered as the reference amount under the ‘Grace Relief Payment Scheme’ for the difference between compounding and simple interest. This difference will be calculated on the basis of this outstanding balance. The Finance Ministry on Wednesday released FAQs (Frequently Asked Questions) in this regard. 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 Rs 2 crore.
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.
Which loan categories are eligible
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.
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