The Government has filed an affidavit in the Supreme Court to provide relief to the loan borrowers. As per reports, the central government's affidavit says that it will waive-off the interest on interest accrued during the extension period and is in mood to even provide relief to those who continued to pay their EMI even during the COVID-19 financial crisis and not just to those borrowers who had availed EMI moratorium. It will be a big relief to all loan borrowers who have taken loans up to Rs 2 crore and availed EMI moratorium benefit given by the Reserve Bank of India (RBI) during lockdown.
The relaxation, in regard to interest on interest (compound interest) will be available to SMEs, education, consumer durable, auto, business and personal loan borrowers who have taken loan up to Rs 2 crore. Credit card repayment delayed due to the EMI moratorium will also come under this relief package.
Speaking on the benefit in regard to the compound interest accruing during the EMI moratorium period, Harsh Roongta, Certified Financial Planner, said, "Any relief is a welcome relief and one should grab this with both hands. But, as far as those who continued to repay their loan during the lockdown, the government of India can provide relief as those loan borrowers who availed bank loan on time are paying EMI at higher interest rate. If it can be fixed at current levels, then it will be a big reward for those loan borrowers who continued to repay their loan even during the lockdown."
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