The Central Government has filed its detailed affidavit before the Supreme Court in connection with the loan moratorium case where it has stated that the interest waiver scheme can be availed by borrowers in specified loan accounts for a period from March 1 to August 31, 2020.
This decision was taken by the Ministry of Finance and has been approved by the Union Cabinet in its meeting held on October 21.
The Centre stated that the interest waiver scheme is applicable (and those can avail) to those who have not availed the moratorium scheme and continued with the repayment to their existing loans.
The Apex Court is scheduled to hear the loan moratorium petitions seeking a direction to waive interest on interest on November 2.
The petitions of Gajendra Sharma and others, including the plea filed by Supreme Court lawyer, Vishal Tiwari, will be heard by the Supreme Court. The court will also go through the RBI, Centre and other respondents' affidavit filed in the case.
The affidavit filed by the Centre, through the Ministry of Finance, brings relief to a large section of borrowers.
The affidavit said the difference between compound interest and simple interest will be deposited in the account of borrowers by November 5. The benefit will be applicable to those who borrowed between March 1 and August 31, 2020.
Under the Scheme, all lending institutions shall credit the difference between compound interest and simple interest in the respective accounts of eligible borrowers for the period between March 1, 2020, till August 31, 2020, the affidavit of the Centre stated.
This amount shall be credited by each of the lending institutions, irrespective of whether such eligible borrowers have fully availed or partially availed or have not availed of the moratorium such as deferment in payment of instalments, the affidavit stated.
It is submitted that the decision is taken after careful consideration, keeping in mind the overall economic scenario, the nature of borrowers, impact on the economy and such other factors as a policy decision earmarking the referred class of borrowers for grant of benefits, the affidavit stated.
( With inputs from ANI )
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