New Delhi: Loan Moratorium i.e. EMI waiver system got big support for people in difficult times of lockdown. There was also a large section of borrowers who did not take advantage of the facility and filled their EMI honestly. Now the central government is planning to give a gift to those who do not avail of the exemption in Loan Moratorium. The government is considering giving cashback to such people. Actually, the case of exemption on interest for the term of Loan Moratorium is pending in the Supreme Court. The government believes that if the Supreme Court gives a decision on interest exemption, then those who did not take advantage of the Loan Moratorium will consider a gift for them.
This cashback will be available to the same customers, who paid the installment non-stop for six months. Not only this, those MSMEs with loans up to Rs 2 crore can also get compensation, who have deposited their installments on time at the time of lockdown. Explain, the Central Government has proposed a waiver of interest on interest during the term of the loan moratorium.
How much can be paid to those who pay the installments on time
The Central Government has constituted an expert committee headed by former Comptroller and Auditor General (CAG) Rajiv Mehrishi to assess the impact of this interest waiver. The committee formed by the Finance Ministry is assessing how much the people benefiting from the loan moratorium have benefited. It is believed that an amount equal to this benefit can be given as cash back to those who have deposited the installment on time. At the same time, one way to give relief to those who pay on time is that the government reduces a part of their principal dues from ‘Interest on Interest’.
The loan moratorium facility started from March this year till 31 August. In this way a total of 6 months people got relief from EMI. Recently, the Supreme Court had increased it to 28 September. The Loan Moratorium was announced by the Reserve Bank of India (RBI) in March this year. The RBI then allowed banks to provide a three-month moratorium on principal and interest payments starting March 1 to provide relief to people in the wake of the Kovid-19 epidemic. It was later extended to 31 August for three months.
