SME Times is powered by   
Search News
Just in:   • Exports fall by over 9 pc YoY in Nov  • Bharti Airtel arm picks up 4.9% stake more in Bharti Infratel  • Engineering exporters seek easier GST refund rules at BoT meet  • Centre to incubate electronics startups opened in K'taka  • Samsung tops global smartphone production in Q3: Report 
Last updated: 25 Oct, 2020  

Rupee.9.Thmb.jpg Relief to borrowers on loans not repaid during 6-month moratorium

Rupee.9.jpg
   Top Stories
» Exports fall by over 9 pc YoY in Nov
» Engineering exporters seek easier GST refund rules at BoT meet
» RBI commences MPC meet on Wednesday
» 'Corporate India gradually reverting to normalcy'
» Manufacturing sector loses growth momentum in November
SME Times News Bureau | 25 Oct, 2020
After announcing a host of demand generating initiatives earlier this month, the government has now approved a new scheme for ex gratia payment to borrowers that will reimburse differential between compound and simple interests for the six-month loan moratorium period.

This means all borrowers who took advantage of loan moratorium extended by the government between March 1 and August 31 will pay only simple interest on repayments not made during the moratorium period. Excess amount charged due to compounding of interest would be returned as ex gratia payment.

The Finance Ministry announced the scheme after the Supreme Court directed the Centre to implement the relief as soon as possible and ahead of upcoming Diwali.

As per the details of the scheme put out by the Department of Financial Services (DFS), the ex gratia payments will be made only to borrowers whose aggregate loan sanctions and outstanding is not more than Rs 2 crore as on February 29, 2020.

All categories of loans -- MSME, education, housing, personal, consumer -- and credit card dues will be eligible.

Also, the borrower accounts with the lending institutions should be standard as of February-end. Loans extended by all institutions, including banks, NBFCs, HFCs, MFIs, cooperative banks will be covered under the scheme.

As per teh court's direction, the Finance Ministry had directed financial institutions to credit ex gratia payments into the accounts of borrowers by November 5.

The Centre will reimburse the ex gratia payments and the lending institutions can lodge their claims designated SBI Cell.

To provide relief from higher interest rates, it had been decided that the new scheme will take the interest rate prevalent during February-end to do the calculations for relief.


 
Print the Page
Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
66.20
64.50
UK Pound
87.50
84.65
Euro
78.25
75.65
Japanese Yen 58.85 56.85
As on 03 Dec, 2020
  Daily Poll
COVID-19 has directly affected your business
 Yes
 No
 Can't say
  Commented Stories
» Starting an import export business: Basic guide for beginners(1)
» MSME registration(1)
» MSME schemes - Do you know all of them?(1)
» Biodiesel is the fuel of future: Santosh Verma(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter