Loan interest waiver to be credited by November 5
Scheme will be implemented even for borrowers who did not avail moratorium.
Three weeks after informing the Supreme Court that the Centre would bear the additional compound interest on loans of up to 2 crore availed by retail borrowers as well as micro, small and medium enterprises (MSMEs), the government formally communicated the modalities of the scheme to lenders on Friday.
Banks and other lenders, including co-operative banks and non-banking finance companies, have been asked to credit the difference between the compound interest and simple interest for the six month period between March 1 and August 31 into these loan accounts by November 5. This would be implemented even for borrowers who had not availed the moratorium on loan repayments allowed by the Reserve Bank of India (RBI) up to August 31.
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The Hindu, 24 October, 2020, https://www.thehindu.com/business/Industry/centre-lays-out-modalities-of-compound-interest-scheme-on-loans-up-to-2-crore/article32936609.ece