During the period of 6 months loan moratorium, interest on the interest charged by banks will be returned to your account by November 5. Its order has been issued by the RBI. The Reserve Bank of India (RBI) levied interest on loans up to Rs 2 crore for a 6-month deferment period starting March 1 from all lending agencies, including non-banking financial companies. Has ordered to be returned. 

If you have taken home loan, education loan, personal loan or any kind of loan, whose amount is less than 2 crore rupees, and have paid, or not, during the Corona crisis. Before Diwali, the government will return the interest on the interest charged. 

But now the question must have been flying in everyone’s mind that how much interest they will get back. Simply put, whatever difference the Compound Interest and Simple Interest paid during 6 months (March-August) will be returned to you, it is easy to understand cashback in easy language. Take it. 

The formula for calculating compound interest is a bit complicated, so we are going to tell you just how easy the interest will get back. Let us understand this with some examples. 

How much money will i get back

Example No. 1. 
Suppose you have taken a loan of 50 lakh rupees. On this, EMIs are being paid according to 7 percent. 

Compound Interest Calculations 

Loan Amount 50 Lakh
Interest 7%
Term 6 Month 
Compound Interest 1,77,572                       

Simple Interest Calculation 
Loan Amount 50 Lakh
Interest 7%
Term 6 Month 
Compound Interest 1,75,000

How much cashback will be available = Compound interest – Simple interest 
                                = 1,77,572- 1,75,000
= Rs 2572

LEAVE A REPLY

Please enter your comment!
Please enter your name here