Financial Express is now on Telegram. The bank/ lending institution will provide ex gratia payment to the borrower account of the difference between compound interest and simple interest … Earlier this month, in the matter of interest relief to borrowers during the moratorium, the Centre had promised to make good the interest on interest. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance. Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Digital Editor. Credit card dues 6. For cash credit or overdraft, the rate of interest will be the rate of interest prevailing as on February 29, 2020, * The rate of interest for credit cards for the purpose of refund will be the Weighted Average Lending Rate (WALR) charged by the card issuers for transactions financed on EMI basis from its customers during the period from 1st March 2020 to August 31, 2020, Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. … As Education loans, Housing loans, Consumer Durable loans, Credit card dues, Auto Loans, Personal loans and Consumption loans are loans that are in the form of a Term Loan / Demand Loan and not a Cash Credit or an Overdraft facility, the outstanding in the account as at the end of 29.2.2020 will be the reference amount for Term Loans on which the interest (simple as well as compound) will be calculated. Automobile loans7. Like us on Facebook and follow us on Twitter. MSME loans2. 2 crore (aggregate of all facilities with lending institutions) as on 29.2.2020, shall be eligible under the Scheme. In case where no interest is being charged on equated monthly instalments for a specified period, for the purpose of relief, interest may be applied at MCLR/ Base rate as the case may be, *For MSME loans, in case of term or demand loans, the rate of interest for the purpose of calculating the differential will be the contracted rate as specified in the loan agreements/ documentation applicable as on February 29, 2020. Modi govt makes these rule changes to help you claim LTC benefits, Why credit cards could be your best friend during challenging times, Sun Pharmaceutical Industries Share Price, This website follows the DNPA’s code of conduct. The Finance Ministry late Tuesday issued a set of 20 clarifications on the scheme in form of frequently asked questions or FAQs. In view of the unprecedented and extreme COVID-19 situation, the object of the Scheme is to provide ex-gratia payment of the difference between compound interest and simple interest by way of relief for the period from 1st March 2020 to 31st August 2020 to borrowers in specified loan accounts. Housing loans4. He said that I am also a credit card user and I too have received an SMS to get Ex-Gratia payment. Credit card dues will also be eligible, the government said.document.write("");googletag.cmd.push(function(){googletag.defineOutOfPageSlot('/6516239/outofpage_1x1_desktop','div-gpt-ad-1490771277198-0').addService(googletag.pubads());googletag.pubads().enableSyncRendering();googletag.enableServices();}); Here are a few key highlights of the scheme: *All loan accounts with sanctioned limits and outstanding not exceeding Rs 2 crore as on 29.02.2020 will be eligible, *The eligibility limit of Rs 2 crore as borrowed sum has to be an aggregate loan taken from the banking system, *The package will be available for eligible borrowers irrespective of whether they have availed or partially availed or not availed the moratorium on repayment announced by RBI, *Loan accounts should be standard in the books of the lending institutions as of 29.02.2020 i.e. Consumer durable loans: The rate of interest to be applied for calculating the difference between simple and compound interest shall be the contracted rate as specified in loan agreement/ documentation. The bank/ lending institution will provide ex gratia payment to the borrower account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding upto Rs. Abhijit Lele | Mumbai Last Updated at October 26, 2020 18:07 IST. grant of ex-gratia payment of difference between compound interest and simple interest 1. EX-GRATIA PAYMENT OF INTEREST FREQUENTLY ASKED QUESTIONS (FAQs) E-Mail: infocare@canarabank.com Nodal Officer: Mr. Shashi Raj Shekhar Phone: 080-22538587 1. BHPian . Automobile loans 7. Q11. 2 crore are eligible. The same is applicable to those who surrendered their cards or repaid loans after 29 February. You must accept new terms of service and privacy policy; Details, Provident Fund 2021: Special Deposit Scheme interest rate for Non-Government PF, Gratuity Funds notified, Stocks to buy in 2021: ICICI Bank, HDFC, among 9 shares that may rally over 55% on economic recovery, Indian Railways Train cancellation refund: Big update for passengers, Railways extends time limit for claims, India to launch world's biggest coronavirus vaccination programme from January 16, details here, Indonesia's Sriwijaya Air lost contact after taking off from Jakarta, Central Government Employee? New Delhi: Earlier this month, all lending institutions were asked to implement provisions of Scheme for grant of ex-gratia payment of the difference between compound and simple interest for six months to borrowers in specified loan accounts (1 March to 31 Aug). Location: Bangalore. Last Friday, the government had announced the scheme for grant of ex gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts. When I called the customer care, they didnt have a clue. Team Business Standard. What is the ex gratia payment to the borrower under the scheme announced by GoI? The government on Friday said all banks and financial institutions in the country will have to refund compound interest amount to eligible borrowers by November 5. Ladakh LAC standoff: India Army has created catch-22 situation for the Chinese, says an expert, Indian Railways creates new record with longest-ever 2.8 km long ‘SheshNaag’ train; Watch video. Personal loans to professionals 8. Kindly visit the Manage my subscription page to discover the benefits of this programme. # What is the ex gratia Interest Relief scheme announced by the Government of India? Topics Credit card refund rules mean, purchases are protected by law - the Consumer Credit Act 1974 gives credit card protection on your purchases over £100. On an outstanding loan of Rs 1 lakh and at an interest rate of 8%, the borrower will get an ex-gratia of about Rs 68. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. The eligibility will only for the following segments/classes of loans: 1. Any debits/credits, which are not reflected in the account, will not be eligible, *However, loans against fixed deposits [including Foreign Currency Non-Resident (Bank) {(FCNR(B)} account, bonds and other interestbearing instruments], and shares etc., and loans given for investment in financial assets (shares, debentures etc.) As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. This will make the approach of the lending institutions uniform for all borrowers, irrespective of whether they have fully availed or partially availed or not availed of the moratorium on repayment of the respective loans as announced by the RBI. 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