{"id":19576,"date":"2020-11-16T15:10:12","date_gmt":"2020-11-16T09:40:12","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=19576"},"modified":"2024-10-11T12:31:51","modified_gmt":"2024-10-11T07:01:51","slug":"government-issues-directions-for-interest-waiver-on-loan-to-borrowers","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/government-issues-directions-for-interest-waiver-on-loan-to-borrowers\/","title":{"rendered":"Government Issues Directions for Interest Waiver on Loan to Borrowers"},"content":{"rendered":"\n<p class=\"has-drop-cap\">In a festival gift to borrowers, the Government has notified a Scheme for grant of ex-gratia payment of difference between compound interest &amp; simple interest for 6 months of <strong><em>loans up to Rs 2 crore for borrowers in specified accounts from 1 March, 2020 to 31 August, 2020<\/em><\/strong>. The Supreme Court has directed further to central government to implement the scheme of interest waiver on loan as soon as possible.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/government-issues-directions-for-interest-waiver-on-loan-to-borrowers\/#Benefits_under_Scheme_would_be_routed_through_Lending_Institutions\" >Benefits under Scheme would be routed through Lending\nInstitutions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/government-issues-directions-for-interest-waiver-on-loan-to-borrowers\/#Talk_To_Expert\" >Talk To Expert<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/government-issues-directions-for-interest-waiver-on-loan-to-borrowers\/#Government_Issues_Directions_for_Interest_Waiver_on_Loan_to_Borrowers\" >Government Issues Directions for Interest Waiver on Loan to Borrowers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/government-issues-directions-for-interest-waiver-on-loan-to-borrowers\/#Amount_Credited_in_borrower_accounts_under_ex-gratia_Payment_Scheme\" >Amount Credited in borrower account\u2019s under\nex-gratia Payment Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/government-issues-directions-for-interest-waiver-on-loan-to-borrowers\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_under_Scheme_would_be_routed_through_Lending_Institutions\"><\/span>Benefits under Scheme would be routed through Lending\nInstitutions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The government notified eligibility criteria for ex-gratia payment under the scheme. The borrowers of MSME loans, Housing loans, Education loans, Credit card dues, Consumer durable loans, Automobile Loans, Personal loans to professionals, Consumption loans who have loan accounts having sanctioned limits and <strong><em>outstanding amount of not exceeding to Rs. 2 crore as on February 29, 2020, must be eligible under this Scheme<\/em><\/strong>.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/operational-manual-of-the-nbfcs\/\">A Complete Guide on Operational Manual of the NBFCs<\/a><\/mark><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Name of the Lending Institution <\/h3>\n\n\n\n<ul>\n<li>1. SBI (<strong><em>State Bank of India<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/State_Bank_of_India\"><strong><em>[1]<\/em><\/strong><\/a><\/sup>)<\/li>\n\n\n\n<li>AIFIs (All India Financial Institutions)<\/li>\n\n\n\n<li>ANB (All Nationalised Banks)<\/li>\n\n\n\n<li>All Urban Co-operative Banks, Banking Companies, and <strong><a href=\"https:\/\/corpbiz.io\/nbfc-registration\">NBFCs (Non-Banking Financial Companies)<\/a><\/strong> registered with Reserve Bank of India <\/li>\n\n\n\n<li>All NBFC\u2014 Micro Finance Institutions being members of an RBI-recognised Self-Regulatory Organisation through MFIN Micro Finance Institutions Network and Sa-Dhan<\/li>\n\n\n\n<li>All District Central Co-operative Banks, State Co-operative Banks, and Regional Rural Banks (RRBs) [via the rural banking system supervisor of NABARD National Bank for Agriculture and Rural Development<\/li>\n\n\n\n<li>All HFCs (<a href=\"https:\/\/corpbiz.io\/housing-finance-company-registration\"><strong>Housing Finance Companies<\/strong><\/a>) registered with the NHB (National Housing Bank) through the supervisor of National Housing Bank<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Eligibility Criteria for ex-gratia Payment under the Scheme<\/h3>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/Eligibility-Criteria-for-ex-gratia-Payment-under-the-Scheme.png\" alt=\"Eligibility Criteria for ex-gratia Payment under the Scheme\" class=\"wp-image-19591\" width=\"489\" height=\"489\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/Eligibility-Criteria-for-ex-gratia-Payment-under-the-Scheme.png 1000w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/Eligibility-Criteria-for-ex-gratia-Payment-under-the-Scheme-150x150.png 150w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/Eligibility-Criteria-for-ex-gratia-Payment-under-the-Scheme-300x300.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/Eligibility-Criteria-for-ex-gratia-Payment-under-the-Scheme-768x768.png 768w\" sizes=\"(max-width: 489px) 100vw, 489px\" \/><\/figure><\/div>\n\n\n<ul>\n<li>Firstly, an Account has to be standardised as of\nFebruary 29, 2020, i.e., the loan must not be for Non-Performing Asset (NPA).<\/li>\n\n\n\n<li>Secondly, the lending institution must be either\na banking company, or a Public Sector Bank, or a Regional Rural Bank, or\nCo-operative Bank or an All India Financial Institution, a Housing Finance\nCompany or a Non-Banking Financial Company registered with the RBI or National\nHousing Bank as a case may be. <\/li>\n\n\n\n<li>The Non-Banking Financial Company, Micro Finance Institution must be a member of a Self-Regulatory Organisation (SRO) recognized by <strong><a href=\"https:\/\/corpbiz.io\/rbi\">RBI<\/a><\/strong>.<\/li>\n\n\n\n<li>Thirdly, a ex-gratia payment under the scheme will be admissible irrespective of whether a borrower in the sub-clause (1) had fully availed or partially availed or not availed of moratorium on repayment announced by RBI.<\/li>\n<\/ul>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Talk_To_Expert\"><\/span>Talk To Expert<span class=\"ez-toc-section-end\"><\/span><\/h2><div class=\"calling-person blog_cta my-4\"> \n\n  \n\n    <div class=\"row\"> \n\n        <div class=\"col-xs-12 col-sm-12 col-md-12 col-lg-12\"> \n\n            <div class=\"d-flex flex-nowrap\"> \n\n                <div class=\"user-online\"> <img decoding=\"async\" src=\"https:\/\/corpbiz.io\/img\/user.jpg\" alt=\"corpbiz\"> <\/div> \n\n                <div class=\"user-online-details ms-3 align-self-center\"> \n\n                    <h2 class=\"text-white mt-0\"><span class=\"ez-toc-section\" id=\"Government_Issues_Directions_for_Interest_Waiver_on_Loan_to_Borrowers\"><\/span> Government Issues Directions for Interest Waiver on Loan to Borrowers <span class=\"ez-toc-section-end\"><\/span><\/h2> \n\n                    <p class=\"mt-3\"><i class=\"fa fa-star\"><\/i><i class=\"fa fa-star\"><\/i><i class=\"fa fa-star\"><\/i><i \n\n                            class=\"fa fa-star\"><\/i><i class=\"fa fa-star-half-full\"><\/i><span \n\n                            class=\"ms-2 text-white\">(4.8)<\/span><\/p> \n\n                <\/div> \n\n            <\/div> \n\n          \n\n        <\/div> \n\n     \n\n        <div class=\"col-xs-12 col-sm-12 col-md-12 col-lg-8 mx-auto\"> \n\n            <div class=\"d-flex justify-content-between call-chat\"> <a href=\"tel:919121230280\"> <span>Call Now \n\n            <\/span><img decoding=\"async\" class=\"ms-2\" src=\"https:\/\/corpbiz.io\/admin\/style\/images\/userfiles\/image\/new_call_icon.png\" \n\n                alt=\"Call With \" width=\"32px\"> \n\n        <\/a> <a href=\"https:\/\/api.whatsapp.com\/send?phone=919289379709&amp;text=Hi, I am Looking For NBFC registration.\" target=\"_blank\" rel=\"noopener\"> <span>Chat With Us<\/span><img decoding=\"async\" class=\"ms-2\" \n\n                src=\"https:\/\/corpbiz.io\/img\/chat-with-expert.png\" alt=\"Chat With \" width=\"32px\"> <\/a> <\/div> \n\n        <\/div> \n\n    <\/div> \n\n<\/div> \n\n\n\n<h3 class=\"wp-block-heading\">Grievance Redressal Mechanism on Interest waiver on Loan<\/h3>\n\n\n\n<p>Issues &amp; concerns relating to claims submitted by the lending institutions must be handled by the designated cell at SBI in consultation with a Government of India. Each lending institution must put in place the grievance redressal mechanism for an eligible borrower for redressal of their grievances arising out of present scheme within one week from a date of issuance of these scheme guidelines, at appropriate levels. <\/p>\n\n\n\n<p>While putting in place such grievance redressal mechanism,\nlending institutions can communicate for the guidance issued by the Indian\nBanks Association in respect of resolution framework for COVID- 19 related\nstress. Grievances of the lending institutions must be resolved through a\ndesignated cell at SBI in consultation with Ministry of Finance, Government of\nIndia.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Amount_Credited_in_borrower_accounts_under_ex-gratia_Payment_Scheme\"><\/span>Amount Credited in borrower account\u2019s under\nex-gratia Payment Scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The benchmarks and modalities for ex-gratia payment of\ndifference between compound interest and simple interest under the scheme would\nbe as detailed separately. The rate of interest was prevailing on <strong><em>29\nFeb 2020<\/em><\/strong>. In case, a rate of interest has changed, it shall not be\nreckoned for the purposes of the computation. <\/p>\n\n\n\n<p>The payable ex-gratia amount has to be credited in an account\nof a borrower by the respective lending institutions under ex-gratia payment\nscheme. The crediting amount in the respective accounts of an eligible borrower\nby the respective lending institution has to be completed on or before <strong><em>5th\nNov 2020.<\/em><\/strong><\/p>\n\n\n\n<p>The lending institutions can lodge their claim for\nreimbursement latest by <strong><em>15th Dec 2020. <\/em><\/strong>Claims have to be\nsubmitted to designated officer cell at the State Bank of India (SBI). SBI is\nadvised to appropriately process the amount its designated officer cell in a timely\nmanner, and to notify details for the same on its website.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The government directed interest waiver on loan the entire nationalized bank to convey that in view of an unprecedented and extreme COVID-19 situation, the Central Govt has approved the scheme for grant of ex-gratia payment of difference between compound interest and simple interest for 6 months to borrowers in specified loan accounts. <a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a> shall be at your disposal if you need any assistance regarding grant of ex-gratia payment.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/regulations-governing-nbfcs-in-india-a-complete-overview\/\">Regulations governing NBFCs in India: A Complete Overview<\/a><\/mark><\/p>\n\n\n<a href=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/Scheme-Letter-1.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">Scheme-Letter-1<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a festival gift to borrowers, the Government has notified a Scheme for grant of ex-gratia payment of difference between compound interest &amp; simple interest for 6 months of loans up to Rs 2 crore for borrowers in specified accounts from 1 March, 2020 to 31 August, 2020. The Supreme Court has directed further to [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":19585,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[153,91],"tags":[1214],"acf":{"service_id":"8"},"authorName":"Soumya Bajpai","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/0.jpg","authorDescription":"Soumya has done LLB (Hons) and has a 2+years experience in writing. Her main interest is in reading judgments, new enactments and amendments taking around in law. She always strives to bring the best to work that she does.","postViews":3835,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/19576"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=19576"}],"version-history":[{"count":7,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/19576\/revisions"}],"predecessor-version":[{"id":66816,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/19576\/revisions\/66816"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/19585"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=19576"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=19576"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=19576"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}