SC Wants Interest Waiver On Loan Moratorium By Diwali; Stops Govt From Delaying It By Setting Fresh Deadline

Last week, we informed you that the Government shall be renouncing the interest on interest accrued over the extension period of EMI moratorium, to bring relief to loan borrowers amidst the COVID-19 financial crisis.

As per the EMI Moratorium affidavit submitted by the Government to the SC last week, borrowers who availed personal loans worth up to Rs 2 crore, among others, were being given a relief package.

The apex court on Wednesday has asked the government to implement the interest waiver on loans in this range, without further ado.

Justice MR Shah says, “The common man’s Diwali is now in the government’s hands”.

SC Urges Govt to Soon Announce the ‘Welcome Decision’

Last week, the Government filed an affidavit in the Supreme Court, dictating a ‘relief’ package to loan borrowers, as per which the interest on interest accrued during the extension period on loans of upto Rs 2 cr, was to be waived-off.

Justice Ashok Bhushan of the three-judge bench in SC said, “Benefits of waivers to borrowers upto Rs 2 crore must be implemented as soon as possible.”

The SC has been pushing the Government to figure out a way to implement the relief package to the people who have been unable to repay loans due to the coronavirus-induced economic crisis, before Diwali.

Supreme Court Sets Deadline to Nov 2

In an attempt to provide relief to the ones facing trouble paying their EMIs on loans during the Covid-19 period, RBI announced a 3-month moratorium period for EMI payments on March 27, payable between March 1 and May 2020.

It was further extended for another 3 months on May 23 and borrowers could defer paying their EMIs until August 31.

In September, the SC asked RBI to come up with a solution, in response to THE numerous petitions by borrowers to waiver the interest on their EMIs, accrued over the loan moratorium period.

The Government was supposed to launch (officially) the interest waiver on loan amounts upto Rs 2 crore.

They have now sought more time from the SC, assuring to bring relief until Nov 15.

To this, the court responded, “”When you have taken a decision why it is delayed for one month?”.

“We welcome the decision of the Centre, only thing it should be translated practically”, adds the court.

In response, the Court has set the new deadline date to November 2.