Coimbatore: Central Government agrees to waive off interest on the 6-month RBI moratorium for loans up to Rs. 2 crore
Coimbatore: The Central Government has agreed to waive off compounded interest for loans up to Rs. 2 crore, frozen by the Reserve Bank of India in a six-month moratorium granted because of the coronavirus pandemic. The government told this to the Supreme Court in an affidavit.
The interest waiver will be applicable for loans availed by MSMEs for educational, housing, consumer goods and automobiles. Interest on credit card dues also come under the waiver. In the affidavit, the government stated, "Under pandemic conditions, the only solution is for the government to bear the burden of waiving of interest."
The waiver on interest will be irrespective of whether the borrower has availed the moratorium. In the meantime, the Finance Ministry has said waiving off interest on loans to every category would amount to a burden of ₹ 6 lakh crore for banks. The case will be taken up again on Monday.
The interest waiver will be applicable for loans availed by MSMEs for educational, housing, consumer goods and automobiles. Interest on credit card dues also come under the waiver. In the affidavit, the government stated, "Under pandemic conditions, the only solution is for the government to bear the burden of waiving of interest."
The waiver on interest will be irrespective of whether the borrower has availed the moratorium. In the meantime, the Finance Ministry has said waiving off interest on loans to every category would amount to a burden of ₹ 6 lakh crore for banks. The case will be taken up again on Monday.