Didn’t skip EMIs during lockdown? Get cashback from your bank: Govt
MUMBAI/ NEW DELHI: The government on Friday spelt out the details of the waiver of interest on interest on loans up to Rs 2 crore where borrowers had taken moratorium during the lockdown and also made it clear that those who didn’t opt for it will get an ex gratia payment or a cashback.
The payment will be made to small businesses and individual borrowers with loans up to Rs 2 crore. The finance ministry on Friday wrote to all RBI-regulated lenders, stating that the government has approved a “scheme for grant of ex gratia payment of the difference between simple interest for six months to borrowers in specified loan accounts” between March 1 and August 31, 2020.
The lenders include banks, cooperative banks, housing finance companies and microfinance institutions.
This follows the government affidavit in the SC that it is willing to bear the difference between simple and compound interest on loans during the moratorium period.