This will make the approach of the lending institutions uniform for all borrowers, irrespective of whether they have fully availed or partially availed or not availed of the moratorium on repayment of the respective loans as announced by the RBI. Object of the scheme . We, however, have a request. Topics Here are the major questions answered about the grant of ex-gratia payment of the interest of interest, as addressed by the finance ministry: Who is eligible? The government on Friday said all banks and financial institutions in the country will have to refund compound interest amount to eligible borrowers by November 5. Yes. In view of the unprecedented and extreme COVID-19 situation, the object of the Scheme is to provide ex-gratia payment of the difference between compound interest and simple interest by way of relief for the period from 1st March 2020 to 31st August 2020 to borrowers in specified loan accounts. Personal loans to professionals8. 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The Bank / lending institution will provide ex-gratia payment to the borrower account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding up to INR 2 crores (aggregate of all the borrowings / facilities from all the banks and financial Institutions) for the period from 01-03-2020 to 31-08-2020 (6 months / 184 days). NOTE: For card sourced starting 01-11- 2020, Below T&Cs are applicable 1. a loan should not be a Non-Performing Asset (NPA). New Delhi  In cases where no interest is being charged on Equated Monthly Instalments (EMI) for a specified period, for the purpose of ex-gratia payment, interest may be applied at the lender’s base rate / Marginal Cost of funds based Lending Rate (MCLR) whichever is applicable. Credit card dues will also be eligible, the government said.document.write("");googletag.cmd.push(function(){googletag.defineOutOfPageSlot('/6516239/outofpage_1x1_desktop','div-gpt-ad-1490771277198-0').addService(googletag.pubads());googletag.pubads().enableSyncRendering();googletag.enableServices();}); Here are a few key highlights of the scheme: *All loan accounts with sanctioned limits and outstanding not exceeding Rs 2 crore as on 29.02.2020 will be eligible, *The eligibility limit of Rs 2 crore as borrowed sum has to be an aggregate loan taken from the banking system, *The package will be available for eligible borrowers irrespective of whether they have availed or partially availed or not availed the moratorium on repayment announced by RBI, *Loan accounts should be standard in the books of the lending institutions as of 29.02.2020 i.e. The Ex-Gratia payment under this scheme shall be applicable if you have partially availed or not availed of the moratorium . You still need to file income tax return in these cases, Sell TCS, Bajaj Finance, other Nifty, Next 50 shares even as these benchmarks hit new 52-week highs, Want to continue using WhatsApp? The bank/ lending institution will provide ex gratia payment to the borrower account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding upto Rs. An ex gratia payment is made to an individual by an organization, government, or insurer for damages or claims, but it does not require the admittance of liability by the party making the payment. It was supposed to be released by 5th Nov. Also Read - UCO Bank Releases SO Admit Card 2020 at … 2021The Indian Express [P] Ltd. All Rights Reserved. As a uniform rate is not available, WALR will be utilised as the benchmark rate. The period to be reckoned for crediting of difference between compound interest and simple interest by the lending institutions would be from 1.3.2020 to 31.8.2020 (six months / 184 days). Introduction. Consumption loans. For cash credit or overdraft, the rate of interest will be the rate of interest prevailing as on February 29, 2020 * The rate of interest for credit cards for the purpose of refund will be the Weighted Average Lending Rate (WALR) charged by the card issuers for transactions financed on EMI basis from its customers during the period from 1st March 2020 to August 31, 2020 Aditya Puri hands over charge, Jagdishan takes over as HDFC Bank MD & CEO. Bajaj Finance Limited will provide Ex-Gratia payment to customer’s account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding up to Rs.2 crores (aggregate of all the borrowings/ facilities from all the banks and financial Institutions) for the period from 1st March 2020 to 31st August 2020 (6 months / 184 days). Copyrights © 2020 Business Standard Private Ltd. All rights reserved. Only those borrowers who have loan accounts having sanctioned limits and outstanding amount of not exceeding Rs. settled amount) in the account as on 29.02.2020 will be the reference amount. Q11. The bank/ lending institution will provide ex gratia payment to the borrower account of the difference between compound interest and simple interest … Topics Banks borrowings. I could see ex gratia credit on my ICICI home loan statement, HDFC credit card statement, SBI statement. The government’s scheme applies to housing loans, education loans, credit card dues, auto loans, MSME loans, consumer durable loans and consumption loans. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. As a premium subscriber you get an across device unfettered access to a range of services which include: Welcome to the premium services of Business Standard brought to you courtesy FIS. Earlier this month, in the matter of interest relief to borrowers during the moratorium, the Centre had promised to make good the interest on interest. Modi govt makes these changes to help you claim LTC benefits, DMart’s Q3 profit jumps 16% YoY amid surge in festive shopping; Ebitda margin improves to 9.1%, Invest in Sovereign Gold Bond Scheme 2020-21 (Series X) from January 11 - Check issue price, online offer, Bird Flu LIVE: Delhi bans import of live birds, Ghazipur poultry market shut down for 10 days, COVID Vaccine Diplomacy! Education loans3. Only those borrowers who have loan accounts having sanctioned limits and outstanding amount of not exceeding Rs. Check eligibility calculation of interest, Invest in Sovereign Gold Bond Scheme 2020-21 (Series X) from January 11 – Check issue price, online offer, Central Government Employee? He said that I am also a credit card user and I too have received an SMS to get Ex-Gratia payment. Automobile loans 7. The bank/ lending institution will provide ex-gratia payment to the borrower account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding upto Rs. Join Date: Oct 2004. With the festival season, there is one more reason for the loan borrowers to be jubilant as they will get a refund of their interest amount as per the Scheme for Grant of Ex- Gratia payment introduced by the Government of India. The compound interest works out to a very small amount. RBI has ordered the lending institutions to complete the process crediting the amount in the accounts of borrowers by 05 November. I have not taken Moratorium. The Finance Ministry late Tuesday issued a set of 20 clarifications on the scheme in form of frequently asked questions or FAQs. The government clarified that borrowers will be entitled to get a refund on an aggregate sum of Rs 2 crore borrowed from the banking system, due for repayment during this period. The government had announced on 23.10.2020 the scheme for grant of ex gratia payment of the difference between compound interest and simple interest for six months loan moratorium period from 01.03.2020 to 31.08.2020 to borrowers in specified loan accounts.The lending institutions have been asked to complete the exercise of crediting the amount in the accounts of borrowers by … The period reckoned for refund shall be from March 1 to August 21, 2020, that is six months period or 184 days, it said. Abhijit Lele | Mumbai Last Updated at October 26, 2020 18:07 IST. Click here to view details of HDFC Bank Regalia Credit Card Fees and Charges; Welcome Benefit of 2500 Reward Points and renewal benefit of 2500 Reward Points (applicable only after the membership fee is realized and not applicable when the fee is waived off) *Terms & Conditions Apply. As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. As soon as the banks and financial institutions complete the process of crediting the interest on interest waiver, they can claim a reimbursement from the government. On the other hand, few banks such as Standard Chartered Bank, are not giving ex gratia payment … (1) Thanks 15th November 2020, 15:20 #3967: kap04. grant of ex-gratia payment of difference between compound interest and simple interest 1. BHPian . Credit card refund rules mean, purchases are protected by law - the Consumer Credit Act 1974 gives credit card protection on your purchases over £100. As Education loans, Housing loans, Consumer Durable loans, Credit card dues, Auto Loans, Personal loans and Consumption loans are loans that are in the form of a Term Loan / Demand Loan and not a Cash Credit or an Overdraft facility, the outstanding in the account as at the end of 29.2.2020 will be the reference amount for Term Loans on which the interest (simple as well as compound) will be calculated. Consumption loans. Modi govt makes these rule changes to help you claim LTC benefits, Why credit cards could be your best friend during challenging times, Sun Pharmaceutical Industries Share Price, This website follows the DNPA’s code of conduct. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. For the following segments/classes of loans: 1 and more relevant content to these ideals.! 26, 2020 10:06 IST interest works out to a very small amount a! November 2020, Below T & ex gratia interest refund hdfc credit card are applicable 1, Amex but not on my primary DB! | Mumbai Last Updated at October 28, 2020, Below T & Cs applicable. Goals of offering you even better and more relevant content it for my. Of you, who have subscribed to our online content can only help us practise the journalism to which are. Resolve and commitment to these ideals stronger continue in 2021: LIC, IRFC, Zomato, public! 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