are also eligible for coverage under the scheme, besides other specified categories of loans like consumer durables, automobiles, education, credit card dues, housing and personal loans to professionals. What will be the treatment of penal interest/ penalties while arriving at the rate of interest? “After crediting the said amount in the respective accounts of eligible borrowers, the lending institutions would claim reimbursement from the Central government through the nodal agency of State Bank of India as stipulated under the scheme," the Centre added. So, even if someone has not opted for loan moratorium, they will be eligible under this scheme. On 23rd October 2020 Ministry of Finance, Government of India issued direction to all lending institutions to implement Scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts (1.3.2020 to 31.8.2020). Under the ex-gratia scheme of government, any loan of up to Rs 2 crore taken before February 29, 2020 will not be charged with compound interest from March 1 to August 31, 2020. What is the time-period for credit/payment of ex-gratia amount by the lender? COVID-19 EX GRATIA SCHEME. Ex Gratia Payment. are also eligible for coverage under the scheme, besides other specified categories of loans like consumer durables, automobiles, education, credit card dues, housing and personal loans to professionals. Credit card dues are eligible for ex-gratia payment of the difference between simple interest and compound interest for the moratorium period of six months i.e March 1, 2020 till August 31, 2020. Loan accounts must be standard as of February 29, 2020. Many users feel that the bank has made a mistake […] The notification said, "The Government of India has announced the Scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts (1.3.2020 to 31.8.2020) (the ‘Scheme’) on October 23, 2020, which mandates ex-gratia payment to certain categories of borrowers by way of crediting the difference between simple interest and compound interest for the period between March 1, 2020, to August 31, 2020, by respective lending institutions. 2 crores (aggregate of all the borrowings / facilities from all the banks and financial Institutions) for the period from 1st March … Kisan Credit Card. Here are the FAQs. The guidelines came after the Supreme Court directed the Centre to implement interest waiver on loans of up to Rs 2 crore under the RBI moratorium scheme "as soon as possible" in view of the COVID-19 pandemic. However, in the case of credit card dues, the government has clarified that the outstanding as on February 29 will be eligible for relief. The Ex-Gratia Scheme was established in recognition of the UK Government’s gratitude for the service of Afghan interpreters, rather than any risk they may face. Yes. Sunday, Jan 10, 2021 | Last Update : 06:53 AM IST, Government set November 5 as the deadline for banks to implement the waiver of 'interest on interest' scheme for six months. Scheme for grant of Ex-gratia payment of difference between compound interest and simple interest for six months to borrower in specified loan accounts (01.03.2020 to 31.08.2020) (2.85 MB) FAQ on COVID-19 Ex-gratia to borrowers for difference in interest dated 26.10.2020. Miscellaneous Activities Produce Marketing Loan Setting up of Agri Clinic and Agri Business centres Land Purchase Scheme SBI Krishak Uthan Yojna Scheme for Debt Swapping of borrowers … An ex gratia payment is made to an individual by an organization, government, or insurer for damages or claims, but it does not require the admittance … Mathura court dismisses Krishna Janmabhoomi petition, From October 15, multiplexes and cinemas can reopen with 50% seating capacity, Shane Warne confident that Sanju will make Team India if he keeps playing like he does this IPL, Natarajan's yorkers hit the spot, and his life story strikes a chord, Rashid dedicates his Man of the Match performance to his late mother — his biggest fan, Copyright © 2016 - 2021 The Asian Age. Eligible and non-eligible … Ex-gratia will not be paid on those credit cards where balance is in “credit” as on 29.02.2020. Ex-Gratia Scheme Payment of differential interest of 6 months To bring financial relief to borrowers in the view of Covid-19 situation, RBI along with Department of Financial services has introduced a "Scheme for grant of ex gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts." F. No.2/12/2020 – BOA.I dated 23rd October, 2020), for grant of ex-gratia payment of difference between compound interest and simple interest for six months i.e. The bank/ lending institution will provide ex-gratia payment to the borrower account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding upto Rs. New Delhi: Agriculture and allied activity loans are not eligible for the interest on interest waiver announced by the government last week, the finance ministry has clarified. The relief shall cover the following segments – MSME Loans, Education loans, Housing Loans, Consumer … Borrowers who have loan accounts with sanctioned limits and outstanding amount not exceeding Rs. RBI has ordered the lending institutions to complete the process crediting the amount in the accounts of borrowers by 05 November. An ex gratia payment is made to an individual by an organization, government, or insurer for damages or claims, but it does not require the admittance of liability by the party making the payment. ... NBFC, housing finance company, credit card issuer) to avail the benefit. You may still get ex-gratia payment 3 min read. Is the loan eligible for ex-gratia payment under the scheme? (aggregate of all facilities with all the lending institutions, excluding Non-Fund based facilities) as on February 29, 2020 are eligible. All lending institutions are advised to be guided by the provisions of the Scheme and take necessary action within the stipulated timeline.". So, at that time, a petition was filed in this regard in the Supreme Court. Photo: iStock Paid credit card bills on time? 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Issuing additional frequently asked questions (FAQs) on the 'scheme for grant of ex-gratia payment of difference between compound interest and simple interest', it said credit card dues outstanding as on February 29 would … Bajaj Finance Limited will provide Ex-Gratia payment to customer’s account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding up to Rs.2 crores (aggregate of all the borrowings/ facilities from all the banks and financial Institutions) for the period from 1st March … Will I be eligible for relief if my credit card balance is in “Credit” as on 29.02.2020? Grant of Ex-gratia Scheme to borrowers. are also eligible for coverage under the scheme, besides other specified categories of loans like consumer durables, automobiles, education, credit card dues, housing and personal loans to professionals. Besides, those who did not opt for moratorium during the coronavirus lockdown will get an ex gratia payment or a cashback. Gold Loan Multi Purpose Gold Loan. The petitioner requested the apex court that no interest should be charged during the moratorium. In view of the unprecedented and extreme COVID-19 situation, the object of the Scheme is to provide ex-gratia payment of difference between compound interest and simple interest by ways of relief for the period from 1st March 2020 to 31st August 2020 to borrowers in specified loan accounts. Loans for consumption purposes (e.g., social ceremonies, etc.) As per the policy decision of the Central Government, this scheme mandates ex-gratia payment to the classes of borrowers mentioned in clause 4 above by way of crediting the difference between simple interest and compound interest for a period between 1.3.2020 to 31.8.2020 by respective lending institutions mentioned in clause 3 above. 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