Finance Ministry Issues Guidelines For Implementation Of Loan Relief

The Finance Ministry on Wednesday approved guidelines for a scheme for grant of payment of the difference between compound interest and simple interest for six months of loans up to ₹ 2 crore. After crediting the amount, the lending institutions will claim the reimbursement from the central government as part of the scheme. Last week, the Supreme Court had directed the Centre to implement the interest waiver on loans of up to ₹ 2 crore under the Reserve Bank of India's moratorium scheme "as soon as possible" in view of the COVID-19 pandemic.
According to operational guidelines issued by Department of Financial Services, the scheme can be availed by borrowers in specified loan accounts for a period from March 1 to August 31, 2020.