Those borrowers on which the total loan till February 29 does not exceed Rs 2 crore will be eligible to avail the scheme.
Giving gifts to borrowers in the festive season, the Finance Ministry on Wednesday approved a guideline related to the payment of the difference between the cycle interest and simple interest on loans up to Rs 2 crore for a period of 6 months. Has given In other words, the central government has stamped its guidelines on interest waiver on interest on loans up to Rs 2 crore.
Let us tell you that the Supreme Court has given an interest waiver scheme on loans up to Rs 2 crore to the Center under the deferment given by the RBI due to the crisis arising due to COVID-19. This guideline has come soon after the directive was given to implement it.
According to the guideline issued by the Department of Financial Services (Department of Financial Services), borrowers can avail the scheme on the respective loan account. This benefit is for the period from March 1, 2020 to August 31, 2020. 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 housing loans, education loans, credit card dues, auto loans, MSME, white goods products and loans for consumption (housing loan, education loans, credit card dues, auto loans, MSME loans, consumer durable loans and consumption loans).
According to this guideline, banks and financial institutions will deposit the difference between the compound interest and the simple interest during the deferment period in the loan account of the eligible borrowers. This facility is available to all eligible lenders who have availed of the exemption granted by the RBI for the full or partial lending 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 Rs 6,500 crore.