Government gives big relief on loans up to 2 crores, they will get big benefit : The central government has given great relief to the borrowers in the Corona crisis. The government has given an affidavit in the Supreme Court that it will waive compound interest on loans up to Rs 2 crore. With this, those taking home loans, personal loans, MSME loans will get a big benefit.
New Delhi: The big question before borrowers who have lost their way of earning during the Corona period is that how will they fill the EMI of their house, car, and the second big crisis is about compound interest of loan moratorium. But now the government has eased their difficulty.
No compound interest on loans up to 2 crores,
if a person or company has taken a loan of up to two crores, then the government will not charge interest on the loan interest, that is, the cycle of compounding interest will end. The government has given an affidavit in the Supreme Court that this 6-month loan moratorium includes from the MSME to the personal loan. That is, compounding interest will not be charged on such a loan.
The Center has said that the government will bear the burden of relaxation of interest in view of the corona virus epidemic. The government has said that permission will be taken from Parliament for suitable grants.
The government changed its stance on the suggestions of the panel
. Earlier in the Supreme Court, the government had said that they could not waive interest on interest, as this would affect the condition of banks. The Supreme Court then formed a panel headed by former CAG Rajiv Maharishi to assist the borrowers. Accepting the suggestions made by this panel, the Center has changed its old position and has now decided not to take compound interest. The next hearing on this matter will be held on 5 October in the Supreme Court.
This facility of 6 months moratorium will be available only to those borrowers who have loans up to 2 crores, those with more loans will stay out of this scheme.
These borrowers will get a rebate
MSME loans up to
2 crores, education loans up to
2 crores, home loans up to
2 crores, auto loans up to
2 crores, consumer durables
up to 2 crores, credit card dues up to
2 crores Personal, Professional Loans up to
2 crores
In the last hearing, the Supreme Court had told the Central Government that they came to the court with some concrete plan. The court had expressed its displeasure at avoiding the case repeatedly. The court also said that loans not repaid till August 31 should not be declared as NPA.
Let us tell you that due to corona and lock-down, the RBI in March gave the borrowers the facility to postpone the moratorium or loan EMI for 3 months. Later it was extended for 3 more months till 31 August. RBI had said that if the loan installment is not repaid for 6 months, then it will not be considered a default. However, after moratorium, full interest will have to be paid on the outstanding payment. The condition of interest has been challenged by some customers in the Supreme Court. He argues that interest in moratorium should be exempt, because it is wrong to charge interest on interest.
