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Scheme for Grant of Ex-gratia Payment of Differential Interest for Six Months Loan Moratorium to Borrowers with FAQs

scheme-for-grant-of-ex-gratia-payment-of-differential-interest-for-six-months-loan-moratorium-to-borrowers-with-faqs


The government had announced on 23.10.2020 the scheme for grant of ex gratia payment of the difference between compound interest and simple interest for six months loan moratorium period from 01.03.2020 to 31.08.2020 to borrowers in specified loan accounts. The lending institutions have been asked to complete the exercise of crediting the amount in the accounts of borrowers by November 5. 

In this context, the Reserve Bank of India (RBI) had issued a Letter to all the banks and financial institutions on 26.10.2020. Further, the government has issued two clarificatory FAQs on 26.10.2020 and 29.10.2020 on COVID-19 ex-gratia to borrowers for the difference in interest.


Update:

Government has issued Additional FAQs COVID 19 Ex Gratia to borrowers for difference in interest Dated 3rd November, 2020.

 

Government has issued Additional FAQs COVID 19 Ex Gratia to borrowers for difference in interest Dated 4th November, 2020.




We have reproduced the entire scheme announced by the government and the related FAQs on COVID-19 ex-gratia to borrowers for the difference in interest as follows-


Sl.

Particulars

Issued on

1.

Scheme for grant of ex-gratia including operational guidelines

23.10.2020

2.

RBI Letter on Scheme for grant of ex-gratia payment 

26.10.2020

3.

FAQs on grant of ex-gratia payment  Series-1

26.10.2020

4.

FAQs on grant of ex-gratia payment Series-2

29.10.2020

5.

FAQs on grant of ex-gratia payment Series-3

03.11.2020

6.

FAQs on grant of ex-gratia payment Series-4

04.11.2020



Scheme for grant of ex-gratia


F. No. 2/12/2020-BOA.I

Government of India

Ministry of Finance

Department of Financial Services


3rd floor, Jeevan Deep Building 

Sansad Marg, New Delhi - 110 001 

Dated 23rd October 2020 


To:


1. State Bank of India (SBI)

2. All India Financial Institutions (AIFIs)

3. All Nationalised Banks

4. All Banking Companies, Urban Co-operative Banks, and Non-Banking Financial Companies (NBFCs) registered with RBI [through RBI]

5. All NBFC— Micro Finance Institutions (NBFC-MFIs) that are members of an RBI-recognised Self-Regulatory Organisation [through Micro Finance Institutions Network (MFIN) and Sa-Dhan]

6. All State Co-operative Banks, District Central Co-operative Banks and Regional Rural Banks (RRBs) [through the rural banking system supervisor {National Bank for Agriculture and Rural Development (NABARD)}]

7. All Housing Finance Companies (I IPCs) registered with the National Housing Bank (NHB) [through the supervisor of HFCs (National Housing Bank)]


Subject: 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)


Madam/sir,


The undersigned is directed to convey that in view of the unprecedented and extreme COVID-19 situation, the Central Government has approved "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)". Benefits under the scheme would be routed through lending institutions. Operational guidelines for the scheme are attached.


2. Eligibility criteria for ex-gratia payment under the scheme are as follows:

(a) Borrowers in the following segments/classes of loans, who have loan accounts having sanctioned limits and outstanding amount of not exceeding Rs. 2 crore [aggregate of all facilities with lending institutions] as on 29.2.2020, shall be eligible under the Scheme:

(i) MSME loans

(ii) Education loans

(iii) Housing loans

(iv) Consumer durable loans 

(v) Credit card dues

(vi) Automobile loans

(vii) Personal loans to professionals

(viii) Consumption loans


Any borrower whose aggregate of all facilities with lending institutions is more than Rs. 2 crore (sanctioned limits or outstanding amount) will not be eligible for ex-gratia  payment under this scheme.


(b) The aforesaid eligibility shall be subject to the following further conditions and stipulations:


(i) Account should be standard as on 29.2.2020, i.e., loan should not be a Non-Performing Asset (NPA) as on 29.2.2020.


(ii) Lending institution must be either a banking company, or a Public Sector Bank, or a Co-operative Bank [i.e., an Urban Co-operative Bank or a State Co-operative Bank or a District Central Co-operative Bank], or a Regional Rural Bank, or an All India Financial Institution, or a Non-Banking Financial Company or a Housing Finance Company registered with RBI or National Housing Bank as the case may be. A Non-Banking Financial Company— Micro Finance Institution should be a member of a Self-Regulatory Organisation (SRO) recognised by RBI.


(iii) The ex-gratia payment under this scheme shall be admissible irrespective of whether the borrower in sub-clause (1) had fully availed or partially availed or not availed of the moratorium on repayment announced by RBI vide its circular DOR. No. BP.BC.47/21.04.048/2019-20, dated 27.3.2020 and extended on 23.5.2020. 


3. The period to be reckoned for crediting of difference between compound interest and simple interest by the lending institutions mentioned in paragraph 2(b)(ii) above to eligible borrowers as per paragraph 2 above would be from 1.3.2020 to 31.8.2020 (six months / 184 days). For accounts closed during the said period, the period for crediting would be from 1.3.2020 and restricted to the date of closure of such account.


4. The benchmarks and modalities for ex-gratia payment of difference between compound interest and simple interest under the scheme would be as detailed in the attached operational guidelines. The rate of interest would be as prevailing on 29.2.2020, i.e., in case the rate of interest has changed thereafter, it shall not be reckoned for the purposes of this computation. The payable ex-gratia amount shall have to be credited to the account of the borrower by the respective lending institutions as ex-gratia payment under the scheme.



5. The aforesaid exercise of crediting the amount as stated above in the respective accounts of the eligible borrowers described in paragraph 2 above by the respective lending institution shall be completed on or before 5.11.2020.


6. After the exercise mentioned in paragraph 5 above has been completed, lending institutions can lodge their claim for reimbursement latest by 15.12.2020. Claims shall be submitted to designated officer(s) / cell at the State Bank of India (SBI). SBI is advised to appropriately equip its designated officer(s) / cell for processing such claims in a timely manner, and to notify details of the same on its website. 


7. Issues and concerns relating to claims submitted by the lending institutions shall be handled through the designated cell at SBI in consultation with Government of India. Each lending institution shall put in place a grievance redressal mechanism for the eligible borrowers for redressal of their grievances arising out of the present scheme within one week from the date of issuance of these scheme guidelines, at appropriate level(s). While putting in place such grievance redressal mechanism, lending institutions can keep in mind the communication dated 1.10.2020 issued by the Indian Banks' Association in respect of resolution framework for COVID- 19 related stress for guidance. Grievances, if any, of the lending institutions shall be resolved through the designated cell at SBI in consultation with the Ministry of Finance, Government of India.


8. In case of any issues/queries relating to interpretation of this scheme, the decision of Government of India shall be final.


Attachment: as above


Yours faithfully, 


(A.K. Ghosh)

Under Secretary 

 Tel: 011-23748755 

Email: boa1-dfs@nic.in


Copy, with the attachment, to:

1. Governor, Reserve Bank of India 

2. Chairman, NABARD 

3. Managing Director, NHB 

4. Chief Executive, Indian Banks' Association 

5. Chairperson, Micro Finance Institutions Network (MFIN) 

6. Chairman, Sa-Dhan 


Operational Guidelines


Issued vide letter F. No. 2/12/2020-BOA.I 

Dated 23.10.2020


Government of India 

Ministry of Finance

Department of Financial Services


COVID-19 Relief


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)


Operational Guidelines 


1. Name of the scheme


This scheme shall be called "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)".


2. Object of the scheme


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. Such payment does not constitute a contractual, legal or equitable liability of the Central Government and is only an ex-gratia payment to the following designated class of borrowers in view of the COVID-19 pandemic.


3. Applicability of the scheme


This scheme shall apply to all lending institutions, which must be either a banking company, or a Public Sector Bank, or a Co-operative Bank [i.e., an Urban Co-operative Bank or a State Co-operative Bank or a District Central Co-operative Bank], or a Regional Rural Bank, or an All India Financial Institution, or a Non-Banking Financial Company or a Housing Finance Company registered with Reserve Bank of India (RBI) or National Housing Bank as the case may be. A Non-Banking Financial Company—Micro Finance Institution should be a member of a Self-Regulatory Organisation (SRO) recognised by RBI. 


4. Eligibility criteria under the scheme


(1) Borrowers in the following segments/classes of loans, who have loan accounts having sanctioned limits and outstanding amount of not exceeding Rs. 2 crore [aggregate of all facilities with lending institutions] as on 29.2.2020, shall be eligible under the Scheme:

(i) MSME loans 

(ii) Education loans 

(iii) Housing loans

 (iv) Consumer durable loans 

(v) Credit card dues 

(vi) Automobile loans 

(vii) Personal loans to professionals 

(viii) Consumption loans 

Any borrower whose aggregate of all facilities with lending institutions is more than Rs. 2 crone (sanctioned limits or outstanding amount) will not be eligible for ex-gratia payment under this scheme.


(2) The aforesaid eligibility shall be subject to the following further conditions and stipulations:


(i) Account should be standard as on 29th February 2020, i.e., loan should not be a Non-Performing Asset (NPA) as on 29th February 2020.


(ii) Lending institution must be either a banking company, or a Public Sector Bank, or a Co-operative Bank [i.e., an Urban Co-operative Bank or a State Co- operative Bank or a District Central Co-operative Bank], or a Regional Rural Bank, or an All India Financial Institution, or a Non-Banking Financial Company or a Housing Finance Company registered with RBI or National Housing Bank as the case may be. A Non-Banking Financial Company— Micro Finance Institution should be a member of a Self-Regulatory Organisation (SRO) recognised by RBI.


(iii) The ex-gratia payment under this scheme shall be admissible irrespective of whether the borrower in sub-clause (1) had fully availed or partially availed or not availed of the moratorium on repayment announced by RBI vide its circular DOR.No. BP.BC.47/ 21.04.048/2019-20, dated 27th March 2020 and extended on 23rd May 2020. 


5. Period to be reckoned 


The period to be reckoned for crediting of difference between compound interest and simple interest by the lending institutions mentioned in clause 3 above to eligible borrowers as per clause 4 above would be from 1.3.2020 to 31.8.2020 (six months / 184 days). For accounts closed during the said period, the period for crediting would be from 1st March 2020 and restricted to the date of closure of such account.


6. Benefit under the scheme 


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. The lending institutions shall credit the difference between compound interest and simple interest with regard to the eligible borrowers mentioned in clause 4 above in respective accounts of such borrowers for the period to be reckoned, irrespective of whether such borrowers have fully availed or partially availed or not availed of the moratorium on repayment of the respective loans as announced by the RBI vide its circular DOR.No. BP.BC.47/21.04.048/2019-20, dated 27th March 2020 and extended on 23rd May 2020.


7.  Manner of claiming reimbursement 


The respective lending institutions as described in clause 3 above shall, after so crediting amounts in the accounts of aforesaid eligible borrowers, claim reimbursement from the Central Government as per provisions hereinafter. 


For the purpose of claiming of reimbursement by the lending institutions covered under this scheme, the compounding of interest shall be reckoned on monthly basis, except where the contrary is specified. Further, for the purpose of claiming of reimbursement by respective lending institutions, calculation of the reimbursable ex-gratia amount shall be as detailed in clauses 8 and 9 hereof.


8. Rate of interest


(1) Education loans, Housing loans, Automobile loans, Personal loans to professionals, Consumption loans — The rate of interest to be applied for calculating the difference between simple and compound interest shall be the contracted rate as specified in loan agreement/ documentation in this respect.


(2) Consumer durable loans — The rate of interest to be applied for calculating the difference between simple and compound interest shall be the contracted rate as specified in loan agreement/ documentation. In cases where, no interest is being charged on Equated Monthly Instalments (EMI) for a specified period, for the purpose of ex-gratia payment, interest may be applied at the lender's base rate / Marginal Cost of funds based Lending Rate (MCLR) whichever is applicable.


(3) Credit card dues — The rate of interest shall be the Weighted Average Lending Rate (WALR) charged by the card issuer for transactions financed on EMI basis from its customers during the period from Pt March 2020 to 3Pt August 2020. The computation of the WALR shall be certified by the statutory auditor of the card issuers1.


(4) MSME loans — The rate of interest to be applied for calculating the difference between simple and compound interest shall be the contracted rate as specified in loan agreement/documentation in respect of the term loan. For cash credit (CC) / overdraft (OD), while the contracted rate of interest would similarly apply, the basis of calculation for simple and compound interest would differ as explained below.


(5) The rate of interest would be as prevailing on 29th February 2020, i.e., in case the rate of interest has changed thereafter, it shall not be reckoned for the purposes of this computation. Penal interest or penalty for late payment would not be reckoned as part of the contracted rate or WALR. 

9. Mode of calculation of simple and compound interest


(1) As Education loans, Housing loans, Consumer Durable loans, Credit card dues, Auto Loans, Personal loans and Consumption loans are loans that are in the form of a Term Loan / Demand Loan and not a Cash Credit [CC] or an Overdraft facility [OD], the outstanding in the account as at the end of 29.2.2020 will be the reference amount for Term Loans on which the interest (simple as well as compound) will be calculated. While making the calculation, repayments in the loan account during the period to be reckoned will be ignored. This will make the approach of the lending institutions uniform for all borrowers, irrespective of whether they have fully availed or partially availed or not availed of the moratorium on repayment of the respective loans as announced by the RBI vide its circular DOR.No. BP.BC.47/21.04.048/2019-20, dated 27th March 2020 and extended on 23rd May 2020.


(2) As MSME loans are sanctioned by way of Term Loan or CC/OD, the following provisions will apply:


(a) For Term Loans:


The outstanding in the account as at end of 29.2.2020 will be the reference amount for Term Loans on which the interest (simple as well as compound) will be calculated. While making the calculation repayments in the loan account during the period to be reckoned will be ignored. This will make the approach uniform for all borrowers, irrespective of whether they have fully availed or partially availed or not availed of the moratorium on repayment of the respective loans as announced by the RBI vide its circular DOR. No. BP.BC. 47/21.04.048/2019-20, dated 27th March 2020 and extended on 23rd May 2020.


(b) For Cash Credit / Overdraft facilities:


(i) Simple interest for the period will be calculated on daily product basis (i.e., on the daily outstanding as at end of the day) at the rate of interest as on 29.2.2020.


(ii) Compound interest will be calculated for the period at the rate of interest as on 29.2.2020 and compounding will be done on monthly rests. It is clarified that this method will also be used in case some loans under sub-clause (1) have been sanctioned and disbursed by way of Overdraft / Cash Credit facility.


10. Claim processing


(1) Lending institutions can lodge their claim for reimbursement latest by 15th December 2020 only after crediting amounts as aforesaid. Claim should be pre-audited by the statutory auditor of the lending institutions and a certificate in this regard shall be attached to the claim.


(2) Claims shall be submitted to a designated officer(s) / cell at State Bank of India (SBI), which will function as the nodal agency under the present scheme and shall receive funds from the Government of India for settlement of claims of lending institutions. SBI shall evaluate the claims to ensure that they are in conformity with this scheme's guidelines, and shall furnish to the Central Government statements of claims found eligible and claims settled.


11. Grievance Redressal Mechanism


(1) Each of the lending institutions referred in clause 3 above shall put in place a grievance redressal mechanism for the eligible borrowers for redressal of their grievances arising out of the present scheme within one week from the date of issuance of these scheme guidelines, at appropriate level(s).


(2) It is clarified that while putting in place such grievance redressal mechanism, lending institutions can keep in mind the communication dated 1.10.2020 issued by the Indian Banks' Association in respect of resolution framework for COVID-19 related stress for guidance.


(3) Grievances, if any, of the lending institutions shall be resolved through the designated cell at the State Bank of India in consultation with the Ministry of Finance, Government of India.


12. Interpretation and removal of difficulties 


In case of any issues/queries relating to interpretation of this scheme, the decision of Government of India shall be final. 



1 Credit card issuers typically rely on a range of rates for financing on EMI basis. As a uniform rate is not available, WALR will be utilised as the benchmark rate.


Download Copy of Govt. Circular on Scheme for grant of ex-gratia including operational guidelines in pdf format

Letter of RBI on Scheme for grant of ex-gratia payment


RBI/2020-21/61 

DOR.No.BP.BC.26/21.04.048/2020-21 

October 26, 2020


All Commercial Banks (including Small Finance Banks, Local Area Banks and Regional Rural Banks)

All Primary (Urban) Co-operative Banks/State Co-operative Banks/ District Central Co-operative Banks

All All-India Financial Institutions

All Non-Banking Financial Companies (including Housing Finance Companies)


Madam/Dear Sir,


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 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. The details of the Scheme are available at:


https://financialservices.gov.in/sites/default/files/Scheme%20Letter.pdf


2. All lending institutions are advised to be guided by the provisions of the Scheme and take necessary action within the stipulated timeline.


Yours faithfully,


(Prakash Baliarsingh)

Chief General Manager


Download Copy of RBI Letter on Scheme for grant of ex-gratia payment in pdf format


FAQ Series-1 on COVID 19 Ex-Gratia to borrowers for difference in interest dated 26.10.2020


FREQUENTLY ASKED QUESTIONS (FAQs)

COVID 19 Ex Gratia to borrowers for difference in interest

Date 26th October 2020


1. What is the ex gratia payment to the borrower under the scheme announced by GoI?


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. 2 crores (aggregate of all the borrowings / facilities from all the banks and financial Institutions) for the period from 1st March 2020 to 31st August 2020 (6 months / 184 days).


2. What are the main features of the ex gratia to borrowers scheme?


The main features / highlights of the scheme are as under: 


a. Loan accounts with sanctioned limits and outstanding not exceeding Rs.2 crores (aggregate of all facilities with all the lending institutions) as on 29.02.2020.


b. Loan accounts should be standard in the books of the lending institutions as on 29.02.2020.


c. The relief shall cover the following segments – MSME Loans, Education loans, Housing Loans, Consumer Durable Loans, Credit Card Dues, automobile loans, personal loans to professionals and Consumption loans.


d. The period reckoned for refund shall be from 1st March 2020 to 31st August 2020, i.e. 6 months period / 184 days.


3. Do I have to apply for the relief?


No. The ex gratia relief will be credited to the account of all eligible borrowers without any requirement to apply.


4. Who will finalise the list of eligible accounts?


Individual banks/ lending institutions will finalise the list of eligible borrower for the relief based on the GoI guidelines.


5. How will the lending institution assess whether a borrower has aggregate loan facilities upto Rs.2.00 cr from the banking system?


Lending institutions are to assess this on the basis of information available with them as well as information accessible from credit bureaus.


6. Will my Non Fund Based Limits as on 29.02.2020 be included for arriving at the eligibility amount of upto Rs.2 crore?


No. Non fund based limits will not be included for arriving at the eligibility.


7. Whether Accounts categorised as SMA-0, SMA-1 and SMA-2 are eligible to avail the benefit of the package?


Yes, the accounts classified as SMA-0, SMA-1 and SMA-2 as on 29th Feb 2020 are eligible for the relief package.


8. Are NPA accounts eligible for the relief package?


No. The loan should not be a “Non Performing Asset (NPA) as on 29.02.2020.


9. Whether borrowers who have opted for deferment of Interest and Instalment under the RBI COVID 19 relief package earlier are eligible to avail the benefit under the above relief?


Yes. The package will be available for eligible borrowers irrespective of whether they have availed or partially availed or not availed the moratorium on repayment announced by RBI vide DOR. No. BP.BC.47/21.04.048/2019-20 dated 27.03.2020 and extended on 23.05.2020.


10. Whether “partly disbursed loans” are covered under the relief package?


Yes, provided that the sanctioned and outstanding amounts do not exceed Rs. 2 Cr. The outstanding as on 29.02.2020 shall be the reference amount for calculating the differential interest amount.


11. Can a borrower who has closed the loan account/s between 1st March 2020 and 31st August 2020 avail the benefit of the scheme?


Yes. Such borrowers are eligible for refund of differential interest from 1st March 2020 upto the date of closure of account (not later than 31st August 2020).


12. In which of my accounts will the differential amount be credited?


The differential amount will be credited to the respective loan account(s).


13. If I have already closed my loan account after March 1st 2020 , how will the differential amount be paid to me?


It will be credited to your savings/ current account and if you do not maintain any such account with the lending institution, you can advise the lending institution the details of the account in other banks where the amount can be credited /remitted to.


14. Which Rate of Interest (%) shall be considered for calculating the package, i.e. RoI (%) considered at the time of sanction or RoI (%) as on 29.02.2020?


a. In respect of Education loans, Housing loans, Automobile loans, Personal loans to professionals and Consumption loans, the rate of interest to be applied for calculating the differential interest component shall be the contracted rate as specified in loan agreements/ documentation applicable as on 29th February 2020.


b. In respect of consumer durable loans, the rate of interest to be applied for calculating the differential interest component shall be the contracted rate as specified in loan agreements/ documentation. In case where no interest is being charged on equated monthly instalments for a specified period, for the purpose of relief, interest may be applied at MCLR/ Base rate as the case may be.


c. MSME:


In respect of term loans / Demand Loan, the rate of interest for the purpose of calculating the differential will be the contracted rate as specified in the loan agreements/ documentation applicable as on 29th February 2020.


In respect of Cash Credit/ Overdraft, the rate of interest for the purpose of calculating the differential shall be the rate of interest prevailing as on 29.02.2020.


d. Credit Cards


Eligibility: The Credit Card outstanding (i.e. settled amount) in the account as on 29.02.2020 will be the reference amount. Any debits / credits which are not reflected in the account will not be eligible/ will be excluded.


RoI (%): The rate of interest shall be the Weighted Average Lending Rate (WALR) charged by the card issuers for transactions financed on EMI basis from its customers during the period from 1st March 2020 to 31st August 2020.


15. Will I be eligible for relief if my credit card balance is in “Credit” as on 29.02.2020?


No. Ex-gratia will not be paid on those credit cards where balance is in “credit” as on 29.02.2020.


16. What will be the treatment of penal interest/ penalties while arriving at the rate of interest?


The contracted rate / interest rate prevailing as on 29.02.2020 which is considered for calculating the interest differential will exclude any penalties or any penal rate of interest applied in the account.


17. What will be the treatment for the repayments / credits made in term loan/ demand loan during the period from 1st March 2020 to 31st August 2020?


The outstanding as on 29.02.2020 will be the reference amount for calculating the differential. Any repayment / credits subsequent from 01.03.2020 – 31.08.2020 shall be ignored for the purpose of calculation.


18. How will the interest be calculated for cash credit/ overdraft accounts?


Simple interest for the period will be calculated based on daily outstanding as at end of the day at rate of interest prevailing as on 29.02.2020. Compounding of interest shall be at monthly rests.


19. How can I flag my grievances related to the relief package?


The borrowers shall register his/her grievance through the link available in the lending institutions’ official site or visit the home branch and submit his / her grievance.


20. A salaried employee/self-employed professional had availed of a personal loan from bank which has some amount outstanding as on 29th February 2020. Is the loan eligible for ex-gratia payment under the scheme?


Yes. Loans for consumption purposes (e.g., social ceremonies, etc.) 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. However, loans against fixed deposits [including Foreign Currency Non-Resident (Bank) {(FCNR(B)} account, bonds and other interest bearing instruments], and shares etc., and loans given for investment in financial assets (shares, debentures etc.) are not eligible for coverage under the scheme.


Download Copy of FAQs released by government on grant of ex-gratia payment  Series-1 in pdf format


FAQ Series-2 on COVID 19 Ex-Gratia to borrowers for difference in interest dated 29.10.2020


FREQUENTLY ASKED QUESTIONS (FAQs)


COVID 19 Ex Gratia to borrowers for difference in interest 

Date 29th October 2020


1. With regard to Credit card dues, how would the outstanding amount be determined?


Credit card dues outstanding as on 29.2.2020 would be considered for giving relief to the borrowers and the benchmark rate applicable for such relief would be the contract rate (WALR), as on 29.2.2020, which is used by the credit card issuers for the purpose of EMI loans.


2. What is settled amount for credit card dues?


Settled amount in case of credit card dues is the amount outstanding against the actual transactions. 


For illustration: Authorisation amount locked at the time of hotel check-in (which is released at the time of check-out) would not be considered as part of the settled amount for calculation of credit card dues.


3. Whether crop loans and other agriculture loans are covered under the scheme?


Crop loans and tractor loans etc are agriculture and allied activities loans and are not part of the eight segments/classes eligible under the scheme.


4. Whether two-wheeler loans are covered under the scheme?


Automobile loans including two-wheeler loans are eligible under the scheme.


5. Whether eligible accounts foreclosed during the period of 1.3.2020 to 31.8.2020 are covered under the scheme?


Yes. Eligible accounts foreclosed during the said period are covered under the scheme.


Download Copy of FAQs released by government on grant of ex-gratia payment  Series-2 in pdf format

FAQ Series-3 on COVID 19 Ex-Gratia to borrowers for difference in interest dated 03.11.2020


FREQUENTLY ASKED QUESTIONS (FAQs)


COVID 19 Ex Gratia to borrowers for difference in interest

Date 3rd November 2020


1. Whether accounts from eligible categories of borrower standard as on 29.2.2020 in a lending institution are covered under the Scheme?


Yes. Accounts of eligible category of borrowers which are standard as on 29.2.2020 are covered under the Scheme, i.e., the loan should not be a nonperforming asset (NPA) as on 29.2.2020 in the lending institution concerned.


2. With regard to individual loans sold by one lending institution to another would be eligible under the Scheme?


Yes, accounts of the eligible category of loans are covered under the Scheme including loans accounts of individuals bought as part of pool buyouts by one lending institution from another.


3. Whether commercial vehicle automobile loans of individuals are covered under the scheme?


Automobile loans including for commercial vehicles, such as four-wheeler taxi, are eligible under the scheme. 


Download Copy of FAQs released by government on grant of ex-gratia payment  Series-3 in pdf format



FAQ Series-4 on COVID 19 Ex-Gratia to borrowers for difference in interest dated 04.11.2020


FREQUENTLY ASKED QUESTIONS (FAQs)


COVID 19 Ex Gratia to borrowers for difference in interest 

Date 4th November 2020



1. Whether consumption loans with gold as collateral security are covered under the Scheme?

Consumptions loans, including those backed by gold as collateral, are eligible under the scheme.

2. Whether micro loans guaranteed by Joint Liability Group (JLG) are covered under the Scheme?

Individual loans from the eight eligible categories of borrowers, including those categorised as Micro, Small and Medium Enterprises (MSME) by the lending institution, are covered under the scheme irrespective of the nature of guarantee.


Download Copy of FAQs released by government on grant of ex-gratia payment  Series-4 in pdf format


 

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1 Comments

  1. I have not taken monetorium and paid my EMI and Intrest on OD Account, Do I have any benifit under this scheme.

    ReplyDelete