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The central government has given great relief to the borrowers. On Friday night, he announced a gift of Diwali to the borrowers from banks, giving relief from interest on loans up to two crore rupees. This relief will be available to all the borrowers, whether they have taken advantage of the six-month exemption from the installment payment or not.
The Financial Services Department issued directions of its operation after the Supreme Court directed to implement the interest relief scheme. Implementation of the scheme is expected to cost the exchequer Rs 6,500 crore. The apex court had on 14 October directed the Center to submit two exemptions from the payment of installments of the Reserve Bank in the wake of the Kovid-19 pandemic. Take a decision as soon as possible to waive interest on loans up to crores of rupees.
The Supreme Court had said that Diwali of common people is now in the hands of the government. According to the guidelines of the Ministry, borrowers can avail this scheme (interest relief) on specified loan accounts from March 1 to August 31, 2020. It said that the borrowers whose loan account has a sanctioned limit or total outstanding balance till February 29 Crore does not exceed Rs, they will be eligible to avail this scheme. As per the eligibility conditions stated in the guidelines, it is mandatory for these accounts to be standard by February 29.
Standard accounts are accounts that are not declared Non Performing Assets (NPAs). Under this scheme, holders of housing loans, education loans, credit card dues, auto loans, MSME loans, durable consumer product loans and consumption loans will be benefited. Under the scheme, the lending institutions will be eligible for the period of the scheme. Deposits of cumulative interest and simple interest will have to be deposited in the respective accounts of.
It has been said in the plan that the borrower has opted for full or partial benefit of the rebate scheme from the installment payment announced by the Reserve Bank on 27 March 2020, it will not be considered eligible for interest relief. The benefit of the debt relief scheme will also be available to the loan holders who continue to pay the regular installments. The lending institutions will claim the central government to get the same amount from the central government after depositing the respective amount in the account of the lender.
The Supreme Court while hearing the case on October 14 had said, it is concerned about how the benefit of interest relief should be given to the borrowers. The Supreme Court had then said that the Central Government has taken a good decision after taking cognizance of the plight of common people. However, the apex court had expressed concern that so far no order has been issued in this regard.
A bench headed by Justice Ashok Bhushan had said that something concrete needs to be done. As soon as possible, a scheme to provide relief to the borrowers up to Rs 2 crore should be implemented. The Supreme Court fixed the next date of hearing of the case on November 2, and said that the banks and lawyers of the central government had told the lawyers, Diwali of the people is now in your hands.