NEW DELHI: The Supreme Court Thursday extended loan repayment moratorium until September 28 and directed banks do not declare any loan as NPA (unproductive asset) for non-payment of fees during the period.
The plan’s previous deadline, which was implemented to help borrowers overcome the Covid-19 crisis, had ended on August 31. Borrowers were allowed to defer loan repayments for a period of six months.
The high court asked the government to consider the request not to charge interest on loans during the default and not to downgrade the credit rating or asset classification of borrowers.
The plan’s previous deadline, which was implemented to help borrowers overcome the Covid-19 crisis, had ended on August 31. Borrowers were allowed to defer loan repayments for a period of six months.
The high court asked the government to consider the request not to charge interest on loans during the default and not to downgrade the credit rating or asset classification of borrowers.
Furthermore, he told the government to consult with the Reserve Bank of India (RBI) and other lenders and make a concrete decision on all the issues raised.
Rajeev Dutta, lead attorney, who appeared before a group of borrowers, told the court that compound interest is still charged in loan cases. “Where is the relief? The loans are being restructured, that should have been done earlier,” he said.
“Lakhs of people are in hospitals because of their sufferings, many people have lost their sources of income. The central government must make its position clear, decide on relief on the moratorium issue, and renounce interest on interest and others if so He believes it, “he added.
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