Loan relief: Government To implement scheme by November 5

Updated : Oct 24, 2020 14:16
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Editorji News Desk

In a relief to borrowers, government has said that it will implement a loan relief scheme by November 5. The Supreme Court had directed government to implement interest waiver on loans of up to ₹ 2 crore under the Reserve Bank of India's moratorium scheme. The relief will come to borrowers in the form of grant of ex-gratia payment of difference between compound interest and simple interest for six months from March 1 to August 30. Lending institutions will first credit the amount on eligible loans up to ₹ 2 crore, which will be reimbursed by the government. Borrowers will only need to pay simple interest for their outstanding borrowing. The government will have to shell out ₹ 6,500 crore for the implementation of the scheme, PTI reported.

Supreme CourtPTIfirstMarch 1August 30six monthsNovember 5

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