If you have availed the facility of loan moratorium after the Lok Down due to Corona virus, there has been news of relief from the government. The government has decided that now people who had taken a loan of two crore rupees or less and were charged interest on them. It will now be credited back to the customers account. For this, the government has instructed the banks to return the interest on the interest back to the customers account till November 5.
For the information, let us know that a hearing is going on in the Supreme Court on the issue of loan moratorium. And there the government said that we can waive interest on interest. But this benefit can be given to those who have taken a loan of 2 crore rupees or less. The government has said that it is not right for the government to forgive more interest or debt. At the same time it would not be true for India’s financial system.
How many people will get the benefit of waiving compound interest
According to a report by Crystal, waiving interest on the interest ie the cycle interest is expected to benefit about 75% of the lending planet. The benefit of this rebate will be available to both those who avail the loan moratorium.
If you have to take this relief, then a condition of the government has to be fulfilled. The government has said that the benefit of interest waiver will be given only to those who have paid all their installments on time till February. And if your loan is not NPA, then if your loan becomes NPA then you will not get the benefit of this scheme. And your compound interest will not be forgiven.
If the government waives the compound interest, then it will cost the government an additional Rs 7500 crore.
According to another report by Crystal itself, it is 40% of small loan customers who will get benefit of this scheme.
Government has paid your compound interest to banks
The government has asked banks to apply for this by December 15. And as much as compound interest will be waived on behalf of banks. It will be replenished by the government.
Right now the question arises here, which borrower will get the benefit of this scheme? This includes home loan education loan, MSME loan, consumer durable loan and credit card loan.
Apart from this, personal loans are also concession loans and vehicle loans. However, your total loan should be less than Rs 2 crore. Only then you will get the benefit of this scheme.
India’s economy will benefit from interest waiver scheme
Industry has welcomed the government’s compound interest waiver scheme. Industry says that this scheme will put additional burden on the government from Rs 6500 crore to Rs 7500 crore. But it will help a lot in improving India’s economy.
Experts say that this is expected to increase market demand. Because people will have extra money, they will be able to spend extra money in the festive season. In such a situation, the benefit of this scheme will not be available only to those whose compound interest will be waived. But also those people who are associated with the industry.
However, industry experts say that if the government forgives the entire interest, the government would have to spend ₹ 150000 for it. Which is not possible for now.
Experts say that people who took loans at higher rates. Those people will get more benefit. Especially those who take gold loan and home loan are expected to get direct and more benefit of this scheme. If you took a loan at a higher rate, it means that compound interest will also be higher on you. And if the government is now forgiving it, then it is going to benefit you more.