The Government has issued guidelines for giving rebate on interest on interest taken on EMI of loan by Reserve Bank of India (RBI) during Coronavirus. In such a situation, now people will be able to get the amount of interest on interest during the festive season. However, this facility will be available only to those loan customers who have taken a loan of less than Rs 2 crore. In such a situation, many people will get the benefit of this decision of the government.

The Supreme Court had directed the Center to implement the interest waiver scheme as early as possible on the loan of up to Rs 2 crore under the moratorium given by the RBI for repayment of loan interest.

According to the guidelines issued by the Financial Services Department, these people will get the benefit , the borrower can avail the scheme on the respective loan account. This benefit is for the period from March 1, 2020 to August 31, 2020. According to this, the defaulters on whom the total loan till February 29 does not exceed Rs 2 crore, will be eligible to avail the scheme. Under this scheme, home loan, education loan, credit card bill, vehicle loan, MSME (micro, small and medium enterprises), loan taken for sustainable consumer salmon and loan taken for consumption.

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People will get cashback. Banks will refund the amount of interest charged above the interest. This is for all eligible lenders, who took advantage of the exemption given by the RBI for loan waiver, wholly or partially, under the scheme announced on March 27, 2020. Financial institutions will claim the central government for the payment of the money by putting it in the account of the concerned borrower. According to sources, the implementation of this scheme will cost the government treasury Rs 6,500 crore.

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