On Friday, Central government announced to approved the scheme for granting of ex gratia payment of the difference between compound interest and simple interest for next six months of loans more than Rs 2 crore.
On March 27, the Reserve Bank of India had announced a three-month moratorium on terms loans from March 1. But on May 23 the moratorium periods extended till August 31,2020.
On October 14, The Upper Court said that the benefits will given to borrowers up to Rs 2 crore and this scehme will be implemented as soon as possible.
Here are the highlights of the scehme you need to know.
1. This scehme will be applicable on MSME loans, automobile loans, education loans, consumption loans, housing loans, consumer durable loans, credit card dues, , professional loans and personal loans.
2. Borrowers with less than Rs 2 crore are not eligible.
3. The loan should not be available for a non-performing asset as on February 29, 2020.
4. The tenure of six months will be start from March 1, 2020 to August 31, 2020.
5. If loan accounts are closed during the mention period, then it will be banned to the date of completion from March 1.
6. On February 29, 2020 the rate of interest would be as prevailing on February 29, 2020.
7. Crediting the amount should be done before November 5, 2020.
8. Once the lending procces is done from institute side the amount will be credit the amount, they can keep their claim for payment latest by December 15, 2020.
9. Each lending institution shall put a grievance redressal mechanism for the eligible borrowers.
10. The claims submitted by banks and other lending institutions will be done through the State Bank of India.