The Central Government on October 24, 2020 notified a scheme for grant of ex-gratia payment of the difference between compound interest and simple interest to borrowers, in specified loan accounts, for March-August 2020 period when a repayment moratorium existed.
- The notification was issued after the Supreme Court had asked the government to come up with the notification/orders by November 2, the next date of hearing.
- The scheme will be available for loans (outstanding/sanction limit) up to Rs 2 crore.
- The relief would cover MSME, education, housing and consumer durable loans, credit card dues, automobile loans, personal loans to professionals and also consumption loans availed from any lending institution.
- The relief will be available to borrowers irrespective of whether moratorium on loan repayment has been availed or not.
- The ex-gratia will be available to borrowers subject to conditions that a loan account should be standard as on February 29, 2020.
