Banks have started returning the amount of interest charged on the interest in the accounts of the borrowers during the period of moratorium on repayment of the loan. Following the scheme, a message was sent to the customer from a public sector bank, "Dear customer Kovid-19 Relief grant amount ... has been deposited in your account on November 3."
The Reserve Bank last week asked all lending institutions, including banks, non-banking financial companies, to ensure that the loan waiver scheme for interest up to Rs 2 crore, during the six-month moratorium period, was waived Should be implemented by November.
The Finance Ministry has released the answers to the questions arising in the minds of common people regarding this scheme. The Ministry on Wednesday said that consumer loans taken against pledging of gold are also eligible for exemption from interest on interest under the scheme.
The Ministry has also clarified that personal loans taken by the lending institution under the eight eligible categories of borrowers, including loans classified as micro, small and medium enterprises (MSME), will also be entitled to exemption under this waiver scheme. Regardless of the type of guarantee for these loans, their eligibility will not be affected.
This second set of answers to common questions has been released by the Finance Ministry within a few days. The ministry has clarified things before the last day of implementation of the plan.
The government announced the scheme only last month following an order from the Supreme Court. The government announced the return of the difference between compound interest and general interest to the debt accounts as a grace grant payment scheme over a period of six months.
Housing loans, education loans, credit card dues, vehicle loans, MSME loans, loans taken for durable consumer goods, and consumption loans have been kept under the purview of the scheme. However, loans taken for agriculture and related activities have been kept separate from this rebate scheme.