Moratorium: Centre issues norms for interest-on-interest waiver

New Delhi: The Union Finance Ministry today gave approval to guidelines for a scheme for grant of ex-gratia payment of the difference between compound interest and simple interest for six months of loans up to Rs 2 crore.

The guidelines came after the Supreme Court directed the government to implement as soon as possible interest waiver on loans of up to Rs 2 crore under the RBI moratorium scheme in view of the Covid-19 pandemic.

According to the operational guidelines issued by Department of Financial Services, the scheme can be availed by borrowers in specified loan accounts for a period from 1 March to 31 August, 2020.

It added: “Borrowers who have loan accounts having sanctioned limits and outstanding amount of not exceeding Rs 2 crore (aggregate of all facilities with lending institutions) as on 29 February shall be eligible for the scheme.”

Housing loan, education loans, credit card dues, auto loans, MSME loans, consumer durable loans and consumption loans are covered under the scheme.

NT Bureau