Loan moratorium cashback before Diwali Government order to release cashback by 5 November 2020

Loan moratorium cashback before Diwali

Loan moratorium cashback before Diwali. If you have taken any kind of loan and paid it during the Corona crisis, or have not paid it. Before Diwali, the government will transfer the interest charged above that loan to your account as cashback. In fact, the Central Government said in the Supreme Court that customers will be given relief by paying interest charged above the interest. After which the Supreme Court advised to implement it soon. Now the government has announced to give a Diwali gift to everyone before 5 November.

Loan moratorium cashback before Diwali Government order

In order to give relief to people troubled by corona crisis, the Reserve Bank will get the benefit on the loan up to 6 months this year. ). But the Reserve Bank gave this exemption to the banks so that they can take interest on the outstanding for this period. This interest collection meant that the customers had to pay compound interest on the outstanding loan.

Payment will be done by November 5

Now the Finance Ministry has issued detailed instructions in this regard on October 23. The Financial Services Department of the Ministry of Finance said that this payment will be made on or before 5 November. This scheme of the central government will benefit all the borrowers, whether they have taken advantage of the six-month exemption from the installment payment or not. That is, the benefit of the scheme will be available to all loan holders up to Rs 2 crore, whether they have applied for moratorium or not.

Those who do not apply Moratorium will also get benefit

This, will be calculated on the basis of interest rate till February 29. The government will refund this amount in a lump sum and according to an estimate, it may cost around Rs 6,500 crore from the central government.

Benefit will be available on all types of loans:

Housing loans, auto loans, personal loans, MSME, education, credit card dues, consumer durable loans and consumption loans will benefit the total eight types of loan holders up to Rs 2 crore.

Under this scheme, banks will give cashback to eligible borrowers and the government will give that money to banks. That means the government will pay . It is believed that out of this, a loan of about 30-40 lakh crores will come under this scheme. According to an estimate, about Rs 5000-6500 crores will be in the form of interest at the rate of 8 per cent annual interest rate.

Read more How to get loan moratorium cashback ? You might be eligible for cashback from your bank

As per the guidelines issued by the Finance Ministry, the amount that will be created after deducting the simple interest from the compound interest in the 6 months period of the moratorium, the same amount will be given to the loan holders in the form of cashback. Those who have taken advantage of the moratorium will also pay the difference between the compound interest and the simple interest as the ex-gratia amount.

Example of loan moratorium cashback calculation

For example, if during the 6 months of Moratorium, you have filled an EMI of Rs 2.40 lakh according to 40 thousand rupees per month. Suppose there is an interest of 40 thousand rupees in this 2.40 lakh rupees. According to the interest rate of about 8 percent on this interest, the interest in a year is Rs 3200. In such a situation, customers will get a cashback of about 1600 rupees on 6 months EMI payment as interest on interest. However, different loans have different interest rates.

The only condition for loan moratorium cashback

For this is that the loan should be classified under the Standard category and should not be declared a Non Performing Asset (NPA). Under this, this benefit will also be available on loans from non-banking financial companies and housing finance companies.