How to get loan moratorium cashback ? You might be eligible for cashback from your bank. The Finance Ministry on Friday notified all Reserve Bank of India (RBI) regulated lenders including commercial and co-operative banks, housing finance companies and microfinance institutions, mentioning that the Centre has approved a “scheme for grant of ex gratia payment of the difference between simple interest for six months to borrowers in specified loan accounts” between March 1 and August 31, 2020.
loan moratorium cashback How to apply and who is eligible
This follows Centre’s affidavit in the Supreme Court (SC) that the government will foot the bill for waiving off the difference between simple interest and compound interest charged on loans during the moratorium period.
Under its scheme, interest charged from customers on loans up to two crore rupees will be refunded during the period of loan moratorium from March 1 to August 31.
The Supreme Court, while hearing in this case, asked the government to take steps as soon as possible.
According to the guidelines issued by the Department of Financial Services, such borrowers, whose total loan was less than Rs 2 crore till February 29, will get this rebate. This scheme is for MSME (Micro, Small and Medium Enterprises) and Personal Loans. The amount recovered as interest on the interest from customers during the moratorium period will be returned by the banks to their account.
Explain that after the impact on the economy due to the Corona crisis, the Reserve Bank of India gave an extension to repay the debt.
Under this, during the deferment granted for six months on loans up to Rs 2 crore, the banks will return the interest recovered on the loan interest to their borrowers in their accounts.
Only those who take MSME, education, home, consumer, auto loans will be able to take advantage of this rebate of the center.