Are you eligible for refund under interest waiver scheme? Check new rules

 

The government clarified that borrowers will be entitled to get a refund on an aggregate sum of Rs 2 crore borrowed from the banking system

The government on Tuesday evening issued ‘frequently asked questions’ on its scheme to refund the compound interest on loans by borrowers, during the loan moratorium period from March-August, 2020, following an ongoing petition in the Supreme Court.

The government clarified that borrowers will be entitled to get a refund on an aggregate sum of Rs 2 crore borrowed from the banking system, due for repayment during this period. Credit card dues will also be eligible, the government said.

Here are a few key highlights of the scheme:

FOR BORROWERS

*All loan accounts with sanctioned limits and outstanding not exceeding Rs 2 crore as on 29.02.2020 will be eligible

*The eligibility limit of Rs 2 crore as borrowed sum has to be an aggregate loan taken from the banking system

*The package will be available for eligible borrowers irrespective of whether they have availed or partially availed or not availed the moratorium on repayment announced by RBI

*Loan accounts should be standard in the books of the lending institutions as of 29.02.2020 i.e. they should not be non-performing assets

*The following type of loan accounts will be eligible: MSME Loans, education loans, housing loans, consumer durable loans, credit card dues, automobile loans, personal loans to professionals and consumption loans