As the festive season is approaching, to energise people on this festival season the central government in its affidavit has said that the difference which will be created between compound interest and simple interest will be credited in the account of borrowers by November 5.
The central government has filed an affidavit with all the details in front of the Supreme court. It is related to the loan moratorium case. In this, the government has stated that the borrowers can avail the loan moratorium scheme in their loan account from March 1 to August 31.
This decision was taken on October 21. It was taken by the Finance Ministry and was approved by the Union cabinet. The centre also stated that the interest waiving scheme will only be favouring those who continued to pay their loans in the lockdown and didn’t avail moratorium scheme.
The further hearings related to the loan moratorium case will be done by November 2. The Central government’s affidavit will provide relief to a large section of people and it also stated that the difference between simple interest and compound interest will be directly credited in the accounts of borrowers.
It will be beneficial to all those people who kept paying their loan amounts from March 1 to August 31. This scheme will order all the financial institutions to credit the difference in the borrower’s account who was paying all the amount when the world was facing a financial crisis.
This amount will be credited by all the financial institutions and will be done to all those eligible borrowers who partially or fully availed the moratorium scheme.
This all started when there was the sudden announcement of lockdown and RBI had to announce moratorium period for 3 months on all the credit card dues, EMI repayments and as the lockdown extended the moratorium period also extended the only condition was that the borrower should not be a non-performing asset and it should be a standard borrower.