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Saturday, 3 October 2020

Relief:Rs. Moratorium borrowers on loans up to Rs 2 crore do not have to pay interest on interest, govt informs Supreme Court








The Finance Ministry said in the Supreme Court that the government will bear the burden of interest waiver on interest
MSME, Home, Auto and Education loan borrowers will benefit from this

The central government has given relief to small businesses and individuals facing poor economic conditions in Corona. 

The central government has filed an affidavit in the Supreme Court in the case of the loan moratorium, saying that the beneficiary of the loan moratorium will not have to pay interest during March-August. Rs. This will benefit on loans up to Rs 2 crore. 


The government also said that those who have paid interest on time will also get the benefit, meaning that even those who do not take a loan moratorium will not have to pay interest. However, the government has not clarified the matter in the affidavit.

Read in Gujarati news 

Who will benefit?

MSME loan
Education loan
Housing loan
Consumer durable loans
Credit card due
Auto loan
Professional personal loan
Consumption loan

The government will bear the burden of interest, the
finance ministry said in an affidavit. 5000-6000 crore. If interest on all categories of loans is waived, Rs. 15,000 crore could be a burden.

Loan moratorium applicable from March 1

Given Corona's economic impact, the RBI offered a moratorium facility for three months in March. The facility was implemented for three months from March 1 to May 31. The Reserve Bank later extended it for three months till August 31. That is, this facility is provided for a total of 6 months.

Read in Gujarati news 

NPAs will not have bank accounts till November 3 The

Supreme Court had on September 3 said that bank accounts which have not repaid the loan should not be allowed to declare NPAs for two months or until further orders. 

During the September 28 hearing, the court said the order not to disclose bank accounts NPAs would continue for two months. That is, banks will not be able to declare NPAs for non-paying accounts until November 3.


Hearing on October 5 The

Supreme Court is hearing a plea for waiver on the term and interest of several people. During the hearing on September 28, the central government had sought time from the court to decide on the interest waiver. 

The central government said it would file an affidavit in two-three days regarding its decision. The matter will now be heard on Monday, October 5. On the same day, the court may rule on the waiver of interest on interest.
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