The Central government has approved a scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts to mitigate COVID19 effect. According to the Department of Financial Services, the scheme can be availed by borrowers in specified loan accounts for a period from 1st March to 31st August. It said that borrowers who have loan accounts having sanctioned limits and outstanding amounts of not exceeding two crore rupees will be eligible for the scheme.
Under the scheme, MSME loans, Education loan, Housing loan, credit card dues, automobile loans, consumption loans and personal loans to professionals are covered. However, borrowers whose aggregate of all facilities with lending institutions is more than two crore rupees will not be eligible for ex-gratia payment under the scheme.
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