This video is describing about Finance ministry officially sent guidelines to implement interest waiver on Loan moratorium. The finance ministry on Saturday announced the details of the implementation of the waiver of ‘interest on interest’ on loans of up to ₹2 crore for the six-month moratorium that was rolled out to mitigate the hardship of borrowers hit by the coronavirus pandemic.
The Centre approved the scheme for ‘grant of ex-gratia payment of difference between compound and simple interest to borrowers of specified loan accounts’ from March 1-August 31. The ‘ex-gratia payment’ or the benefit will have to be routed through lending institutions, the ministry said in a circular addressed to banks and other lending institutions on October 23.
The lender has to credit the amount to the account of the borrower on or before 5 November, giving relief to borrowers ahead of Diwali.
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