Govt Wants To Pay Interest On Your EMIs During Loan Moratorium: Will SC Allow?
The Coronavirus pandemic and the lockdown impacted loan borrowers’ ability to pay EMIs, for which there was a moratorium period announced.
However, now, the Union Cabinet has announced that the Government will pay interest on EMIs that haven’t been paid in this moratorium period.
How will this benefit loan borrowers? Read on to find out all the details!
Government To Pay Interest On Unpaid EMIs During Moratorium Period Of Loan Borrowers
On Wednesday, the Union Cabinet announced their decision that the interest on the EMIs will be paid by the Government. This decision comes just days ahead of the festive season and will be a great news for all loan borrowers.
As we all know, the Reserve Bank of India had announced a moratorium period from March 1 to August 31 of this year due to the lockdown imposed nationwide.
The lockdown affected the ability of many loan borrowers to pay back their EMIs in time. The moratorium meant that if the borrower is unable to repay the loan during this period, then the loan will not be considered as default.
However, the banks had started charging interests on the EMIs that were unpaid during the moratorium period. As per reports, the government had told the Supreme Court that the compound interest, which is the interest on EMI, of Rs. 2 crore will be paid by the government. This includes MSME and individual segments as well.
Scheme Will Be Applicable Only To EMIs Unpaid During Moratorium Period
And this decision will prove to be beneficial for the people who weren’t able to pay back their EMIs on time.
As per reports, the matter is in the court right now, and that the government will provide its information to the Supreme Court directly.
This scheme by the Government is applicable only for the unpaid EMI during the 6 months that were included in the moratorium period.
This decision by the government has also been approved by the Union Cabinet as well.