The moratorium was between March 1 and August 31. Sources said that the final decision will be announced before Diwali.
The Center has told the Supreme Court that interest on interest will be waived during the moratorium. Incidentally, during the lockdown, the RBI informed that the moratorium was declared. In other words, even if the EMI installment is not paid within that period, there will be no negative impact on the borrower. After much hesitation in the case, the Center said that no interest would be charged on the loan amount during this period. This time, the source said, those who have consistently met their EMI, will also be given this opportunity.
At present, work is underway to finalize the plan in this regard. The moratorium was between March 1 and August 31. Sources said that the final decision will be announced before Diwali.
Not only personal loans, but also home loans will get this discount on a loan of Tk 2 crore. Finance ministry officials said the compound interest would be paid to all borrowers, including those who took advantage of the moratorium and those who did not.
For this, the Center will compensate the financial loss of the banks. The banks feared that waiving such interest would put more pressure on their financial situation. A committee headed by former CAG Rajeev Mehrshi then pointed out that the center should pay the money as compensation.
The Center had told the Supreme Court that it would take some time to launch the scheme. The court expressed dissatisfaction. After that, the center took initiative to implement this project quickly.