Cabinet Decision Loan Moratorium Case Center Modi Govdernment Gives Big Relief To Borrowers On Compound Interest

[ad_1]

Relief On Loan Moratorium: The Modi government has given great relief to those taking advantage of the loan moratorium during the Corona period (Covid 19 Pandemic). In the cabinet meeting chaired by Prime Minister Narendra Modi, during the loan moratorium period of 6 months, Rs 973 crore will be deposited in the bank account of the customers as a waiver of interest on interest.

In fact, banks and financial institutions had demanded an additional compensation amount of Rs 973.74 crore from the government, which would be compounded interest and simple interest in the bank accounts of bank customers who took advantage of the six-month loan moratorium between 1.3.2020 to 31.8.2020. The amount to be transferred is the difference between Earlier the government had made a provision of Rs 5500 crore for this scheme, but on behalf of SBI, the government was told that claims worth Rs 6473.74 crore have been received, after which the government has approved to pay another Rs 973.74 crore.

This decision of the government will benefit those bank borrowers who will be able to get the compensation amount for the difference between compound interest and simple interest during the loan moratorium period of six months of the corona period, even if the borrower has taken advantage of the moratorium. Or not. This will be of great benefit to the small borrowers who had to face huge difficulties in repaying the bank loans during the pandemic.

In fact, after the intervention of the Supreme Court, the Central Government had given a big relief to the people who had taken loan from the bank for the moratorium period of six months during the Corona period. The compound interest applicable on MSME loans, education loans, home loan loans, consumer durables loans, car loans, credit card dues, professional loans, and consumption loans up to Rs 2 crore was waived off. The government had paid compound interest to banks in lieu of customers. The central government had then said that in the event of corona virus epidemic, the only solution is to bear the burden of exemption of interest. A panel was constituted under the chairmanship of former CAG Rajiv Mehrishi after the Supreme Court directed the central government to help the borrowers. The central government had earlier said in the court that it cannot waive the interest and it would affect the banks. But after the suggestion of this committee, the government waived the interest on interest.

Explain that due to Corona and lockdown, RBI had given the facility to people to postpone the moratorium i.e. loan EMI for 6 months in March 2020. RBI had said that if the loan installment is not paid for 6 months, then it will not be considered as a default. But, after the moratorium, full interest will have to be paid on the outstanding payment. The interest condition was challenged by some customers in the Supreme Court. His argument was that interest should be exempted in the moratorium, because it is wrong to charge interest on interest.

read this also

Explainer: Crude oil became costlier by $20 in 50 days, but the price of petrol and diesel did not increase due to elections!

Elon Musk Invited to Set Plant: Now this state has invited Elon Musk, told best place to set up EV plant

,

[ad_2]

Source
(This is an auto-generated article from syndicated news feed. TEAM BEPINKU.COM may not have modified or edited the article).

About the Author: TEAM BEPINKU.COM

We share trending news and latest information on Business, Technology, Entertainment, Politics, Sports, Automobiles, Education, Jobs, Health, Lifestyle, Travel and more. That's our work. We are a team led by Mahammad Sakil Ansari.

You May Also Like