“The central government has ordered all credit institutions to implement the scheme and credit the amount (compound interest) calculated according to the scheme to the respective accounts of the borrowers before November 5.” the ministry of finance he said in an affidavit.
The CV had asked the government to explain the mechanism to implement its decision to waive interest on interest during the six-month moratorium period for those who had borrowed up to Rs 2 crore, including MSMEs. The Center had said that the benefit would be available to those who took advantage of the moratorium, paid their fees or partially benefited from the benefits.
The ministry said: “Under the scheme, all lenders will credit the difference between compound interest and simple interest in the respective accounts of eligible borrowers for the period from March 1 to August 31. The amount will be credited by each of the credit institutions. under the plan, regardless of whether said eligible borrowers have fully, partially or not made use of the moratorium, which is the deferral of payment of installments.
“After crediting said amount to the respective accounts of eligible borrowers, the credit institutions would claim reimbursement from the central government through the nodal agency of the State Bank of India as stipulated in the scheme,” he added.
The ministry said this decision was made after “careful consideration, taking into account the general economic scenario, the nature of the borrowers, the impact on the economy and other factors such as a policy decision that assigns the stipulated class of borrowers to the granting of benefits “.
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