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Didn’t skip EMIs during lockdown? Get cashback from your bank: Government

By Lokmat English Desk | Published: October 24, 2020 4:50 PM

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The Finance Ministry said on Friday that if a borrower has paid the installment continuously during the loan moratorium, then he will get a cashback for loan moratorium.
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The government had announced a waiver of interest on interest during moratorium on loans up to 2 crore.
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The Central Government gave complete information about its decision on interest on interest during Loan Moratorium on Friday, during which it has been said.
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The lockdown was announced on 25 March. The Loan Moratorium Declaration was implemented from 1 March to 31 August. During this period, the borrowers were given relief from paying EMI.
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Later during the Moratorium period, the case of interest on interest reached the Supreme Court and the government said that the borrowers would not have to pay interest on the interest. This will have an impact of about 7000 crores on the government exchequer.
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In such a situation, it was bound to arise that it would be an injustice to the borrowers who paid the debt in difficult circumstances like lockdown. In such a situation, on Friday, the government has clearly said that if a borrower did not take advantage of Moratorium and paid the installment on time, they would get cashback from the bank.
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Under this scheme, such borrowers will get the benefit of difference in simple loan interest of 6 months.
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The government had recently announced a waiver of interest on interest during the Moratorium to the borrowers up to 2 crore.
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The government had filed an affidavit in the Supreme Court stating that the compound interest (interest on interest) applicable on MSME loan, education, housing, consumer, auto, credit card dues and consumption loans would be waived.
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According to the government, in the 6-month loan moratorium time, the interest on loans up to Rs 2 crore will be waived.
Tags: Didn’t skip EMIs during lockdown? Get cashback from your bankCoronavirus Lockdown
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