Introduction. # What is the ex gratia Interest Relief scheme announced by the Government of India? Consumption loans. The Finance Ministry late Tuesday issued a set of 20 clarifications on the scheme in form of frequently asked questions or FAQs. Last Friday, the government had 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. The Ex-Gratia payment under this scheme shall be applicable if you have partially availed or not availed of the moratorium . The same is applicable to those who surrendered their cards or repaid loans after 29 February. Enjoy Reading! As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. MSME loans2. Education loans3. Location: Bangalore. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. 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. I got it for all my secondary cards - ICICI, Amex but not on my primary HDFC DB card. Bajaj Finance Limited will provide Ex-Gratia payment to customer’s account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding up to 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). Object of the scheme . Automobile loans 7. Automobile loans7. Only those borrowers who have loan accounts having sanctioned limits and outstanding amount of not exceeding Rs. Financial Express is now on Telegram. As a uniform rate is not available, WALR will be utilised as the benchmark rate. Digital Editor. In view of the unprecedented and extreme COVID-19 situation, the object of the Scheme is to provide ex-gratia payment of the difference between compound interest and simple interest by way of relief for the period from 1st March 2020 to 31st August 2020 to borrowers in specified loan accounts. a loan should not be a Non-Performing Asset (NPA). Yes. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. 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Support quality journalism and subscribe to Business Standard. Credit card interest waiver In the case of credit card dues, the interest rate will be the weighted average lending rate (WALR) charged. Only those borrowers who have loan accounts having sanctioned limits and outstanding amount of not exceeding Rs. Housing loans4. Like us on Facebook and follow us on Twitter. Consumption loans. Ex-Gratia Scheme for borrowers notified! Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. Market HIGHLIGHTS: Sensex ends at record closing high, Nifty near 14,350; Maruti, Tech Mahindra zoom over 5%, Don't have taxable income? Also Read - UCO Bank Releases SO Admit Card 2020 at … 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. 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 or an Overdraft facility, 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. Credit card dues will also be eligible, the government said.document.write("");googletag.cmd.push(function(){googletag.defineOutOfPageSlot('/6516239/outofpage_1x1_desktop','div-gpt-ad-1490771277198-0').addService(googletag.pubads());googletag.pubads().enableSyncRendering();googletag.enableServices();}); Here are a few key highlights of the scheme: *All loan accounts with sanctioned limits and outstanding not exceeding Rs 2 crore as on 29.02.2020 will be eligible, *The eligibility limit of Rs 2 crore as borrowed sum has to be an aggregate loan taken from the banking system, *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, *Loan accounts should be standard in the books of the lending institutions as of 29.02.2020 i.e. they should not be non-performing assets, *The following type of loan accounts will be eligible: MSME Loans, education loans, housing loans, consumer durable loans, credit card dues, automobile loans, personal loans to professionals and consumption loans, * The credit card outstanding (i.e. The compound interest works out to a very small amount. Kindly visit the Manage my subscription page to discover the benefits of this programme. Ladakh LAC standoff: India Army has created catch-22 situation for the Chinese, says an expert, Indian Railways creates new record with longest-ever 2.8 km long ‘SheshNaag’ train; Watch video. The government on Tuesday evening issued ‘frequently asked questions’ on its scheme to refund the compound interest on loans by borrowers, during the loan moratorium period from March-August, 2020, following an ongoing petition in the Supreme Court. The Ex-Gratia Payment Scheme is the payment of the difference between the Compound Interest and the Simple Interest for six months ending 31 August 2021 to borrowers in specified loan accounts. On the other hand, few banks such as Standard Chartered Bank, are not giving ex gratia payment … He said that I am also a credit card user and I too have received an SMS to get Ex-Gratia payment. The period reckoned for refund shall be from March 1 to August 21, 2020, that is six months period or 184 days, it said. Modi govt makes these rule changes to help you claim LTC benefits, Why credit cards could be your best friend during challenging times, Sun Pharmaceutical Industries Share Price, This website follows the DNPA’s code of conduct. 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 … 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 on or before 5.11.2020. An ex gratia payment is made to an individual by an organization, government, or insurer for damages or claims, but it does not require the admittance of liability by the party making the payment. The Top Court, Hon’ble Supreme Court is hearing a batch of petitions that raised issues concerning the six months loan moratorium period announced due to the COVID-19 pandemic. NOTE: For card sourced starting 01-11- 2020, Below T&Cs are applicable 1. Earlier this month, in the matter of interest relief to borrowers during the moratorium, the Centre had promised to make good the interest on interest. The government clarified that borrowers will be entitled to get a refund on an aggregate sum of Rs 2 crore borrowed from the banking system, due for repayment during this period. As soon as the banks and financial institutions complete the process of crediting the interest on interest waiver, they can claim a reimbursement from the government. While making the calculation, repayments in the loan account during the period to be reckoned will be ignored. … Topics Banks borrowings. 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). Q11. 2 crore (aggregate of all facilities with lending institutions) as on 29.2.2020, shall be eligible under the Scheme. For cash credit or overdraft, the rate of interest will be the rate of interest prevailing as on February 29, 2020 * The rate of interest for credit cards for the purpose of refund will 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 August 31, 2020 As a premium subscriber you get an across device unfettered access to a range of services which include: Welcome to the premium services of Business Standard brought to you courtesy FIS. I have not taken Moratorium. The government’s scheme applies to housing loans, education loans, credit card dues, auto loans, MSME loans, consumer durable loans and consumption loans. Did anyone get the "Ex-gratia refund" on their HDFC credit card yet? The lending institutions have been asked to complete the exercise of crediting the amount in the accounts of borrowers by November 5. Any debits/credits, which are not reflected in the account, will not be eligible, *However, loans against fixed deposits [including Foreign Currency Non-Resident (Bank) {(FCNR(B)} account, bonds and other interestbearing instruments], and shares etc., and loans given for investment in financial assets (shares, debentures etc.) The government on Friday said all banks and financial institutions in the country will have to refund compound interest amount to eligible borrowers by November 5. No Interest Rebate on Credit Card During the hearing in the Supreme Court, Tushar Mehta, who is appearing for the Central Government, said that the credit card user will also get ‘Ex-Gratia’. Credit card dues 6. Personal loans to professionals 8. 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. The RBI has notified the Scheme for grant of ex-gratia payment of the difference between compound interest and simple interest for six months ending August 31, 2020. Further, the loan account should be standard as on February 29, 2020, i.e. We believe in free, fair and credible journalism. Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Even partly-disbursed loans will be covered under the scheme. 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 up to INR 2 crores (aggregate of all the borrowings / facilities from all the banks and financial Institutions) for the period from 01-03-2020 to 31-08-2020 (6 months / 184 days). Last Friday, the government had 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. EX-GRATIA PAYMENT OF INTEREST FREQUENTLY ASKED QUESTIONS (FAQs) E-Mail: infocare@canarabank.com Nodal Officer: Mr. Shashi Raj Shekhar Phone: 080-22538587 1. 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). Consumer durable loans5. Your support through more subscriptions can help us practise the journalism to which we are committed. 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. When I called the customer care, they didnt have a clue. 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. Aditya Puri hands over charge, Jagdishan takes over as HDFC Bank MD & CEO. Personal loans to professionals8. 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