Those who have availed the loan moratorium are OK. What’s wrong with them? Corona What about those who have worked hard and paid off debts even in difficult times?
The Reserve Bank of India recently announced a loan moratorium. That is, many people lose their jobs due to the corona virus lockdown, and their incomes decline, leaving them unable to repay their loans. With this, the RBI brought in a loan moratorium. The loan moratorium is effective from March 1 to August 31. The RBI has announced that those who have taken loans from banks can avail it. Many of the borrowers of small and medium enterprises, education, housing, credit card payments, auto loans, personal loans have availed this loan moratorium. However, the banks came as a shock to those who utilized this loan moratorium. They charge interest on all months in respect of how many months they have been consuming. The Center has decided to waive the interest on that interest. The case is currently pending in the Supreme Court.
However, those who have availed the loan moratorium are OK. What’s wrong with them? Corona What about those who have worked hard and paid off debts even in difficult times? There seems to be an opinion in the central government as to whether they should be benefited in some way. Information that a decision will be made to benefit those who do not take a loan moratorium. The Times of India reported that the Center hopes to reward those who have repaid their monthly loan EMIs without taking out a loan moratorium. The Center plans to give cash back to individuals who have taken loans of less than Rs 2 crore and to small- and medium-sized companies.
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‘A lot of people have taken out a loan moratorium. Should creditors be honored even in such a difficult situation? Otherwise it doesn’t make sense. ‘ The article quoted a senior government official as saying. However, at present the matter of waiver of interest on interest is within the purview of the Supreme Court. The center is then likely to make a decision on the matter.
ICRA Vice President Anil Gupta said, “The majority of the people have used the loan moratorium. It is not even a big expense for the Center to benefit those who do not avail such loan moratorium. It could cost just Rs 5,000 crore to Rs 7,000 crore. ‘ Said. However, this requires a large-scale exercise. Because the RBI gave the loan moratorium for six months. Some of them used the moratorium for six months. Others consume only 2 months and then pay their EMIs for four months. Some may use moratoriums for three months and some for four months. So, financial experts say the center should also look at how to benefit such people.
