A good news has come for you on the occasion of Dussehra. If you have paid your loan installments during lockdown, the bank will give you cashback. The central government has said that if bank customers do not take advantage of moratorium during lockdown and continue to pay their loan installments, then cashback will be beneficial. During the Coronavirus, the Government of India (RBI) has issued guidelines to give interest rebate on the interest taken on the EMI of the loan. In such a situation, people will now be able to get the amount of interest on interest during the festive season.
Those who repay EMI on time will get benefit. The government has clearly said that if a borrower does not take advantage of Moratorium and pays the installment on time, then they will get cashback from the bank. Under this scheme, such borrowers will get the benefit of a difference of 6 months in simple and compound interest.
Facility given by the epidemic The Reserve Bank of India (RBI), in view of the facilities of the customers during the time of corona virus epidemic, gave them the facility of loan moratorium for six months. During this time those who were financially unable to pay EMI took advantage of it. At the same time, many people have paid regular installments even during the moratorium period. Banks will give cashback to such people.
This facility, available from March 1 to August 31, was given to the facility of Loan Moratorium from March 1 to August 31. Later during the Moratorium period, the case of interest on interest reached the Supreme Court and the government said that the borrowers will not have to pay interest on the interest. This will affect about 7000 crores on the government exchequer.
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Exemption was granted on loans up to 2 crores, the government had announced a loan waiver on interest during the moratorium to the borrowers of up to 2 crores. The government had filed an affidavit in the Supreme Court saying that the compound interest (interest on interest) applicable on MSME loan, education, housing, consumer, auto, credit card dues and consumption loan will be waived. According to the government, in the 6-month loan moratorium time, the interest on the loan interest of up to two crore rupees will be waived.