Business News: Between the months of March and August, which is known as the Moratorium period the banks and non-banking financial institutions started depositing the interest on the credit cards as well loan EMIs.
Within six months many of the customers had received and so on receiving the messages from the banks and allowed the institutions about credit and its difference between simple interest and compound interest collected on the loans up to Rs.2,00,00,000.
For the loans of six months Moratorium period the government recently passed a new schedule for the ex gratia payment to the borrowers and in this schedule, the banks and the other institution asked to reimburse the difference between the simple and compound interest.
The benefit to the borrowers irrespective of whether the moratorium was allowed or not is all about according to the notification of the government. And also, the government extended benefits for the loans below of Rs. 2crore in the eight categories.
The following categories are Education, housing, Personal, Auto, MSMEs, consumer durables, credit cards and consumption. On the schemes and dues credit card users will get the benefits. The WALR (weighted average lending rate) is being charged by the bank.
In the month of March, the Reserved Bank of India had announced a Moratorium as the part of the measures to mitigate economic hardships caused by the whole lockdown in the nation. The Non – banking and Banking financial institution had charged interest for loan payment installments.
All banks and NBFCs are covered under the scheme. The report of Crisil’s analysis shows the cost of the scheme would be of Rs.7500 crore to the exchequer. After that the government submitted the waive’ interest on interest’ charges on loans up to Rs.2 crore for six months.
With Inputs from India Tv News