Good News! Cashback will come in the account of those who do not take EMI exemption till Nov 5

On this Diwali, the government is going to give a huge gift of 6500 crores to the debtors of the country. If you have taken a loan of up to 2 crores from some kind of financial institution then you will also get this gift. The bank or financial institution from which you have taken this loan will transfer this amount to your account by November 5.

There is no problem with the scheme

Indian Banking Association Chairman Rajkiran Rai said that this is a very straightforward scheme. If the loan is not nonperforming asset (NPA) till February 29, then all the loan holders will get the benefit of the scheme. Its calculation will not take any time, because the whole work will be done with the help of software. However, to take advantage of this, approval of auditors will be required. Only the auditors will check the eligibility. It is believed that banks will prepare a column on their website. Here eligible borrowers will be able to keep their problems.

Interest waived on interest during moratorium

In fact, the central government has given great relief to the borrowers. It has announced a gift of Diwali to the borrower from banks, giving relief from interest on loans up to two crore rupees. This relief relates to the Moratorium period which was implemented from March 1 to August 31. During this period, the borrowers were given immediate relief from EMI.

The central government scheme will benefit all the borrowers, whether they have taken advantage of the six-month exemption from the installment payment or not. The Financial Services Department issued directions of its operation after the Supreme Court directed to implement the interest relief scheme. The implementation of this scheme is expected to cost the exchequer Rs 6,500 crore.

Loan should not be NPA till February 29

The Supreme Court on October 14 directed the Center to take a quick decision on waiving interest on loans up to two crore rupees as part of the Reserve Bank’s exemption from payment of installments in the wake of the Kovid-19 pandemic.

The Supreme Court had said that Diwali of common people is now in the hands of the government. As per the guidelines of the ministry, ‘the borrowers whose loan account has no sanctioned limit or total outstanding balance till February 29, will be eligible to avail the scheme.’ As per the eligibility conditions stated in the guidelines, it is mandatory for these accounts to be standard by February 29. Standard accounts are accounts that are not declared NPA.

You will get benefit on all types of loans

Under this scheme, holders of home loan, education loan, credit card dues, vehicle loan, MSME loan, consumer durable loan will get benefits. Under the scheme, the financial institution would have to deposit the amount of difference between the Compound Interest and Simple Interest in the respective accounts to the borrowers. The scheme states that the plan states that the borrower has opted for full or partial benefit of the rebate scheme from the installment payment announced by the Reserve Bank on March 27, 2020, it will be considered eligible for interest relief. The debt relief scheme will also benefit those borrowers who continue to pay regular installments.

Loans up to 40 lakh crores will come under this scope

Explain that under this scheme, banks will give cashback to eligible borrowers and the government will give that money to banks. Financial institutions have a loan outstanding of around Rs 100 lakh crore. It is believed that out of this, a loan of about 30-40 lakh crores will come under this scheme.

According to the interest rate of 8%, about 5000-6500 crores will be as interest on interest. This benefit will be given to the bank borrowers and the government to the banks.

(With inputs from navbharattimes.indiatimes.com)