In the midst of Coronavirus epidemic, the Central Government has given great relief to the borrowers. The Narendra Modi government at the Center told the Supreme Court that it has agreed to waive interest on interest during the Loan Moratorium Case period (March to August). People can get this relief on a loan of up to two crore rupees. This interest waiver will apply to MSME loans and educational, housing, consumer durable, auto, credit card dues, professional and consumption loans. In the last hearing, the Supreme Court had told the Center that they came to court with some concrete plans for different areas. The court had expressed its displeasure at repeatedly postponing the case.
According to the Times of India, the Center has filed an affidavit in the Supreme Court saying that the MSME loan, education, housing, consumer, auto, credit card dues, professional and consumption loans applicable to compound interest means Compounding Interest waived. Will be done. According to the government affidavit, the loan moratorium of 6 months will give interest rebate on the loan interest of up to two crore rupees. The Center has said that this is the only solution for the government to bear the burden of interest rebate in the event of corona virus epidemic. Also, the Center has said that permission will be sought from Parliament for suitable grants.
Let me tell you that on September 28 last week, the Supreme Court had adjourned the hearing on two PILs against the interest charged on the loan interest during the loan moratorium period for October 5, Monday. During the last hearing, Solicitor General Tushar Mehta said that the Central Government has not been able to take any concrete decision in this matter. Therefore, the Center was asked to present some concrete plans for various areas. Mehta had said that she is in talks with the Reserve Bank of India in this matter and a solution will come out very soon.
The Center has changed the attitude of not waiving interest following the recommendations of the panel. A panel headed by Ex CAG Rajiv Maharishi was constituted after the Supreme Court directed the central government to help the borrowers. The central government had earlier said in the court that it cannot waive interest and it would affect the banks. Now the next hearing of this case is to be held on 5 October.
A 6-month Loan Moratorium was found due to the lockdown. According to the government, the loan Moratorium period may extend up to 2 years. The expert committee has also given its report on this. On September 10, Tushar Mehta said in court that he cannot waive interest, but will reduce the pressure of payment. Mehta had said that the banking sector is the backbone of the economy and no decision can be taken to weaken the economy.
Actually, there is a provision in this loan moratorium that those who cannot give their EMI in the corona epidemic will have the option to postpone their EMI for further. However, the petitioners say that the common people are not getting any benefit from this, because those who are postponing their EMI, then have to pay full interest for the period of this adjournment.
