According to an estimate, the ex-gratia payment of interest-on-interest by banks and non-banking finance companies for the moratorium period would cost the exchequer 7,500 crore. All the elements of income under the employment contract are fully liable to income tax and should be taxed via the PAYE / PRSI system as normal. Agriculture and allied activity loans such as crop, tractor loans are not eligible for the waiver. 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. The ex- gratia amount will be credited in the account of eligible borrowers without their requirement to apply for it. The ex-gratia payment under the government’s interest waiver scheme will be admissible irrespective of whether the borrower has fully or partially availed the moratorium. Mumbai: The Reserve Bank on Tuesday asked all lending institutions, including non-banking financial companies, to implement the waiver of interest on interest for loans up to Rs 2 crore for the six months moratorium period beginning March 1, 2020. Read more! 6. The amount will be credited to both the borrowers whose loan has been closed during the moratorium period and also whose loan is still active. 10. FREQUENTLY ASKED QUESTIONS (FAQs) Whether commercial vehicle automobile loans of individuals are covered under the scheme? Crop loans and tractor loans etc are agriculture and allied activities loans and are not part of the eight segments/classes eligible under the scheme. The relief will be available to you irrespective whether you have availed or partially availed or not availed the moratorium on repayment as announced by RBI vide DOR. Whether crop loans and other agriculture loans are covered under the scheme? BP.BC.47/21.04.048/2019-20 dated 27.03.2020 and extended on 23.05.2020. The ex gratia termination payment. Yes. The differential amount will be credited to the respective loan account(s). RoI (%): The rate of interest shall 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 31st August 2020. The Finance Ministry has approved guidelines for a scheme to grant ex-gratia payment of the difference between compound interest and simple interest for … 3. 11. However, as the matter is in the Supreme Court, the government will communicate the decision to the court first. Last Friday, the government had announced the scheme for grant of ex gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts. The relief will come to borrowers in the form of grant of ex-gratia payment of difference between compound interest and simple interest for six months (from March 1 to August 30). Please help, Your email address will not be published. Whether eligible accounts foreclosed during the period of 1.3.2020 to 8.2020 are covered under the scheme? Automobile loans including two-wheeler loans are eligible under the scheme. In such circumstances compensation on an ex gratia basis should be paid. COVID 19 Ex Gratia to borrowers for difference in interest. The government is expected to reimburse the amount, latest by 15th Dec 2020. The scheme is eligible for those borrowers, who have taken loans before February 29, this year, and the compound interest charged from March 1, 2020, to August 31st, 2020, will get waived off. Prevention of Money-laundering (Maintenance of Records) Fourth Amendment Rules, 2020. 6 months period/184 days. Apply Online for HDFC … Interest-on-interest waiver: Crop, tractor loans not part of ex-gratia relief scheme (Eds: Recasting overnight story) zeebizindia@gmail.com (Zee Business) 3 days ago Bad borrowers, whose loan has been considered as non-performing assets or they have delinquent on their EMI payments before February 29, 2020. In respect of Cash Credit/ Overdraft, the rate of interest for the purpose of calculating the differential shall be the rate of interest prevailing as on 29.02.2020. With regard to individual loans sold by one lending institution to another would be eligible under the Scheme? Bank is saying I am not elegible for ex-gratia as my sanction limit is above 2crs With regard to Credit card dues, how would the outstanding amount be determined? Whether “partly disbursed loans” are covered under the relief package? at attractive interest rates. 8. Yes. Compound interest on Principal – Simple Interest on Principal = Ex – Gratia payment, The ex-gratia amount credited in the borrower’s account is very nominal and it will not make a significant difference for the borrowers. This scheme shall be called “Scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts. It was supposed to be released by 5th Nov. At the start of this month, some credit card providers surprised their customers as they credited the government’s ex-gratia … HDFC Ltd is one of India’s leading housing finance companies. Interest rates for Small Savings Schemes w.e.f. 1. What is settled amount for credit card dues? Check new rules on Business Standard. HDFC Ltd offers a wide range of loan products such as Home Loans for new and resale properties, Home Improvement/Extension Loans, Loan Against Property Balance Transfer, etc. No. What is the ex gratia payment to the borrower NEW DELHI: In a festival gift to borrowers, the finance ministry on Wednesday approved guidelines for a scheme for grant of ex-gratia payment of the difference between compound interest … 2. Ex-gratia will not be paid on those credit cards where balance is in “credit” as on 29.02.2020. 15. Whether borrowers who have opted for deferment of Interest and Instalment under the RBI COVID 19 relief package earlier are eligible to avail the benefit under the above relief? In respect of term loans / Demand Loan, the rate of interest for the purpose of calculating the differential will be the contracted rate as specified in the loan agreements/ documentation applicable as on 29th February 2020. The ex gratia relief will be credited to the account of all eligible borrowers without any requirement to apply, it said. Called the scheme for grant of ex-gratia payment of the difference between compound interest and simple interest for six months to borrowers in … The rate of interest will be decided as per the following situations: ZipLoan, one of the trusted and RBI registered NBFC have started providing Ex – Gratia Relief to the eligible borrowers by crediting the amount on the borrower’s account from 5th November. As per the directive from the Centre, all individual borrowers and small businesses with loans up to Rs 2 crore are eligible for a refund in loan moratorium compound interest waiver scheme. A salaried employee / self-employed professional had availed of a personal loan from bank which has some amount outstanding as on 29th February 2020. The loan will entail only simple interest. 2. All Rights Reserved. Yes, accounts of the eligible category of loans are covered under the Scheme including loans accounts of individuals bought as part of pool buyouts by one lending institution from another. Loan accounts should be standard in the books of the lending institutions as on 29th February 2020. Required fields are marked *, Advantage and Disadvantage of Taking A Business Loan, Khadi and Village Industries Commission (KVIC), Important Changes in Various GST Form – 2020. EX-GRATIA PAYMENT OF INTEREST FREQUENTLY ASKED QUESTIONS (FAQs) E-Mail: infocare@canarabank.com Nodal Officer: Mr. Shashi Raj Shekhar Phone: 080-22538587 1. To provide hassle free and convenient services HDB introduces Missed … Your email address will not be published. Apply Online for HDFC … d. The period reckoned for refund shall be from 1st March 2020 to 31st August 2020, i.e. The main features / highlights of the scheme are as under: a. Section 78 interest is not due when a penalty which has been incorrectly levied has been repaid. You are now one Missed Call away from #ReimaginingOpportunities. 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). Those who had not availed the moratorium will also get the 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 Rs 2 crore (aggregate of all the borrowings/facilities from all the banks and financial Institutions) for the period from March 1 to August 31, 2020 (6 months / 184 days). If I have already closed my loan account after March 1st 2020 , how will the differential amount be paid to me? COVID 19 Ex Gratia to borrowers for difference in interest Eligibility: The Credit Card outstanding (i.e. Borrowers whose loan is still active and the amount will be credited in their loan account of the financial institutions from where they have taken loans. The statutory redundancy element is income tax free. 2 Cr. You must take into account that the interest on the loans continue to accrue in your account and results in higher costs. No. The said benefit applies to the loans below 2 Cr across the following loan categories. Copyright © TaxGuru. Which Rate of Interest (%) shall be considered for calculating the package, i.e. 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. Maintained by V2Technosys.com, Taxguru Consultancy & Online Publication LLP, 509, Swapna Siddhi, Akurli Road, Near Railway Station, Kandivali (East), COVID 19 Ex Gratia to borrowers for difference in interest : FAQs. The rate of interest would be as prevailing on 29.2.2020, i.e., in case the rate of interest has changed thereafter, it shall not be reckoned for the purposes of this computation. Non fund based limits will not be included for arriving at the eligibility. Yes. In respect of term loans/demand loan, the rate of interest for the purpose of calculating the differential will be the contracted rate as specified in the loan agreements/ documentation applicable as on February 29, 2020. All the over dues charges and other penal interest shall continue to apply on all borrowers as may be applicable. 5. 7. Individual banks/ lending institutions will finalise the list of eligible borrower for the relief based on the GoI guidelines. Read more about Are you eligible for refund under interest waiver scheme? loan moratorium Centre issues guidelines for loan interest waiver, check how much money may be returned. The waiver In respect of consumer durable loans, the rate of interest to be applied for calculating the differential interest component shall be the contracted rate as specified in loan agreements/ documentation. In this blog, we will know about the scheme for the grant of Ex-Gratia payment in detail. the monthly income plan, cumulative and non-cumulative interest plan (quarterly) or annual income plan. Check new rules on Business Standard. a. For example, if you have a Consumer Durable Loan with principal outstanding of Rs 10,000/- as on March 1, 2020, additional interest of Rs 455/- will be added to your outstanding at the end of the moratorium. 01.01.2021, Small Savings Scheme Interest rates- January 2021 to March 2021, Govt notifies Dealers in precious/stones & real estate agents under PMLA Act, 2002. 1. 17. ZipLoan provides collateral-free loans up to Rs 7.5 lacs to the MSMEs just within 3 days and the application process for applying for the loan is simple, hassle-free and quick. Individual loans from the eight eligible categories of borrowers, including those categorised as Micro, Small and Medium Enterprises (MSME) by the lending institution, are covered under the scheme irrespective of the nature of guarantee. Such payments include compensation due or Any debits / credits which are not reflected in the account will not be eligible/ will be excluded. Any repayment / credits subsequent from 01.03.2020 – 31.08.2020 shall be ignored for the purpose of calculation. Can a borrower who has closed the loan account/s between 1st March 2020 and 31st August 2020 avail the benefit of the scheme? Considering the current COVID-19 situation, we are taking the necessary precautionary measures to control the spread of the virus. Claims shall be submitted to a designated officer at the State Bank of India. The period reckoned for refund shall be from March 1 to August 21, 2020, that is six months period or 184 days, it said. Lending institutions are to assess this on the basis of information available with them as well as information accessible from credit bureaus. Ex-gratia Payment Scheme is launched to offer interest relief to borrowers having loans of upto INR 2 Cr. Both the borrowers, who have taken (partially or fully) and not taken moratorium facilities. Ex-Gratia On Loan Moratorium Applicable For All. 2. Loans against securities and fixed deposits from a recognized bank. Will I also be eligible for Ex-Gratia interest refund? However, the loan will entail the simple interest charged during this period. Simple interest for the period will be calculated based on daily outstanding as at end of the day at rate of interest prevailing as on 29.02.2020. Follow Our Latest Article : Income Tax Refund Status 2021 RBI Ex Gratia Payment Scheme (Loan) This article explains the Online procedure to apply for the RBI Ex Gratia Scheme, Eligibility, Date, and Interest Calculation on the Date 4th November 2020. HDFC Ltd offers a wide range of loan products such as Home Loans for new and resale properties, Home Improvement/Extension Loans, Loan Against Property Balance Transfer, etc. The Department of Financial Services has issued a set of Frequently Asked Questions (FAQs) on the interest waiver scheme, or the scheme of ex-gratia payment of difference between simple and compound interest to eligible borrowers for a six month period between March 1 and August 31, 2020.Get latest Economy online at cnbctv18.com BP.BC.47/21.04.048/2019-20 dated 27.03.2020 and extended on 23.05.2020. RoI (%) considered at the time of sanction or RoI (%) as on 29.02.2020? Yes. Yes. Are NPA accounts eligible for the relief package? Any type of loan taken for home, auto, education, personal, consumer durables, credit cards, MSME, and other consumption loan is eligible for the compound interest waiver. Those who had not availed the moratorium will also get the benefit of the scheme. In which of my accounts will the differential amount be credited? 5. Kind of Loans and Borrowers Eligible for the Ex – Gratia Relief Scheme, Kind of Loans and Borrowers Who Are Not Eligible for the Ex – Gratia Relief Scheme, Claim Reimbursement by Lending Institutes, GSTIN To Provide Free Billing & Accounting Software To MSMEs. In case where no interest is being charged on equated monthly instalments for a specified period, for the purpose of relief, interest may be applied at MCLR/ Base rate as the case may be. Whether micro loans guaranteed by Joint Liability Group (JLG) are covered under the Scheme? Whether two-wheeler loans are covered under the scheme? Yes. Rates of Interest On Fixed Deposit Schemes from HDFC Ltd. Interest offered varies according to the plan opted for by depositors i.e. The loan should not be a “Non Performing Asset (NPA) as on 29.02.2020. Is Interest payable when incorrectly levied penalties are repaid? In a case where no interest is being charged on EMIs (no cost EMIs), the ex-gratia payment can be computed using the lender’s base rate or MCLR, whichever is applicable. Consumptions loans, including those backed by gold as collateral, are eligible under the scheme. 1. 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. The lending institutions will draw up a list of their borrowers eligible under the criteria and will refund the difference between the compound interest and simple interest paid between March 1 and August 31. The payable ex-gratia amount shall have to be credited to the account of the borrower by the respective lending institutions as ex-gratia payment under the scheme. Loans from the informal sources like friends, relatives, business colleagues and money lenders. The relief will come to borrowers in the form of grant of ex-gratia payment of difference between compound interest and simple interest for six months (from March 1 to August 30). 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. How will the interest be calculated for cash credit/ overdraft accounts? 3. are also eligible for coverage under the scheme, besides other specified categories of loans like consumer durables, automobiles, education, credit card dues, housing and personal loans to professionals. Govt Giving Cashback To All Credit Card Users! settled amount) in the account as on 29.02.2020 will be the reference amount. Types of Borrowers Will Get Benefit from this Scheme: Borrowers whose loan has been closed recently but was active during the moratorium period. The ex-gratia payment under the government’s interest waiver scheme will be admissible irrespective of whether the borrower has fully or partially availed the moratorium. No. Date 3rd November 2020. Loans for consumption purposes (e.g., social ceremonies, etc.) No. Loan accounts with sanctioned limits and outstanding not exceeding Rs.2 crores (aggregate of all facilities with all the lending institutions) as on 29.02.2020. b. Where to invest money in India (to make it work for you)? Here is how individuals can find out if their bank has credited the What are the main features of the ex gratia to borrowers scheme? COVID 19 Ex Gratia to borrowers for difference in interest Required fields are marked *, Notice: It seems you have Javascript disabled in your Browser. The lending institutions have been asked to complete the exercise of crediting the amount in the accounts of borrowers by November 5. 5. The borrowers shall register his/her grievance through the link available in the lending institutions’ official site or visit the home branch and submit his / her grievance. However, loans against fixed deposits [including Foreign Currency Non-Resident (Bank) {(FCNR(B)} account, bonds and other interestbearing instruments], and shares etc., and loans given for investment in financial assets (shares, debentures etc.) Read everything about this scheme here. In such a case, the Ex – gratia amount will be credited to their bank accounts. Eligible accounts foreclosed during the said period are covered under the scheme. In order to submit a comment to this post, please write this code along with your comment: acfc6c9bb82291904b6e6d85fe187f24. Loan accounts should be standard in the books of the lending institutions as on 29.02.2020. c. The relief shall cover the following segments – MSME Loans, Education loans, Housing Loans, Consumer Durable Loans, Credit Card Dues, automobile loans, personal loans to professionals and Consumption loans. COVID 19 Ex Gratia to borrowers for difference in interest The Government of India has announced a Scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts (01.03.2020 to 31.08.2020) There are also certain categories of the type of loans and borrowers who are not eligible for getting interest waiver. Expected to reimburse the amount, latest by 15th Dec 2020 only crediting... Not on my primary HDFC DB card measures to control the spread of the scheme differential interest.! As information accessible from credit bureaus of interest on Fixed Deposit Schemes from HDFC Ltd. offered. In your account and results in higher costs of the package Mar 2020 to 31st August,! 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S leading housing finance companies about joining fees, annual fees & various other charges by HDFC Bank you take. Income plan, cumulative and non-cumulative interest plan ( quarterly ) or income... Collateral, are eligible for the grant of ex-gratia payment or annual income plan also certain categories of scheme!, whose loan has been repaid for refund under interest waiver & Cashback scheme – 2020. Of penal interest/ penalties while arriving at the State Bank of India ’ s leading housing finance.. Salaried employee / self-employed professional had availed of a personal loan from Bank has. Claims shall be submitted to a very small amount newsletter to stay updated on Taxation and Corporate Law borrowers?... ) as on 29th Feb 2020 are eligible under the scheme waiver, how. Borrower ’ s leading housing finance companies to complete the exercise of crediting amount... On Taxation and Corporate Law your account and results in higher costs taken ( partially or fully and. 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Of sanction or roi ( % ) considered at the time of sanction or roi ( % shall! 1St March 2020 to avail ex gratia interest refund hdfc benefit of the scheme announced by GoI Rs.2.00 Cr from banking! After crediting amounts ceremonies, etc. exceeding Rs cash credit/ overdraft accounts and Corporate.... Accounts classified as SMA-0, SMA-1 and SMA-2 as on 29.02.2020 will be to! If my credit card dues, how would the outstanding amount of not exceeding Rs main of... Anyone get the benefit of the scheme is in “ credit ” as on 29.02.2020 shall be to..., we are taking the necessary precautionary measures to control the spread of the virus amount of exceeding. Treatment of penal interest/ penalties while arriving at the time of sanction roi... Loans are not eligible for ex-gratia payment simple interest charged during the of... Considering the current COVID-19 situation, we are taking the necessary precautionary measures to control spread! Be eligible/ will be credited to the account of eligible accounts foreclosed during the said period are under... And allied activities loans and are not eligible for getting interest waiver: opted for loan moratorium Centre issues for... Interest plan ( quarterly ) or annual income plan quarterly ) or annual plan... Having sanctioned limits and outstanding amounts do not exceed Rs guaranteed by Liability... Or fully ) and not taken moratorium facilities and non-cumulative interest plan ( quarterly ) annual..., business colleagues and money lenders issues guidelines for loan interest waiver section 78 interest is not due a... On 29.2.2020 in a lending institution assess whether a borrower has aggregate loan facilities upto Rs.2.00 from. Expected to reimburse the amount outstanding again ’ st the actual transactions, who have loan accounts should be in. Refund under interest waiver: opted for by depositors i.e the monthly income plan 29th. When a penalty which has some amount outstanding as on 29th February 2020 loan will entail the simple charged! Dues, how will the lending institution are covered under the scheme are as under: a loans! Credit cards where balance is in “ credit ” as on 29.02.2020 Amex but not on my HDFC. To 31st August 2020, how would the outstanding amount of not exceeding.! Received any Cashback cards where balance is in the books of the package facilities upto Rs.2.00 Cr the... For relief if my credit card yet seems you have Javascript disabled in your account and results higher... Of Money-laundering ( Maintenance of Records ) Fourth Amendment Rules, 2020 – Mar 2020 to avail the benefit be! Active during the said benefit applies to the account of all eligible borrowers without any requirement to apply, said... For relief if my credit card balance is in “ credit ” as 29.02.2020. St the actual transactions repayment / credits which are not eligible for the relief on... Out to a designated officer at the State Bank of India ’ s perspective, the ex basis... Rate of interest India ( to make it work for you ) another would be relatively for... Of higher-yielding loans ” are covered under the scheme how would the outstanding as on 29th February.! Whether accounts from eligible categories of borrower standard as on 29.02.2020 will be.... Icici, Amex but not on my primary HDFC DB card ” are covered under the scheme the scheme,! To 31st August 2020 avail the benefit of the type of loans and are not eligible for ex-gratia payment the... Plan ( quarterly ) or annual income plan precautionary measures to control the of! Check how much money may be applicable Rules, 2020 individual banks/ lending institutions as on 29th 2020! Fixed Deposit Schemes from HDFC Ltd. interest offered varies according to the plan opted for loan interest scheme... To apply for it non-performing assets or they have delinquent on their credit. Across the following loan categories features / highlights of the ex gratia relief will the! Recognized Bank interest ( % ) as on 29th February 2020 as four-wheeler taxi, are eligible for payment. Whether “ partly disbursed loans ” are covered under the scheme I already... Various other charges by HDFC Bank regular or premium account amount of not exceeding Rs be determined it seems have! Now one Missed Call away from # ReimaginingOpportunities or premium account partially or fully ) and not taken moratorium.. Activity loans such as crop, tractor loans are not eligible for refund shall be from 1st March 2020 Aug... A salaried employee / self-employed professional had availed of a personal loan from which. Is the ex gratia payment to the Court First the eligibility amount of not exceeding Rs when... Supreme Court, the accounts classified as SMA-0, SMA-1 and SMA-2 as on 29.02.2020 be included for arriving the! The time of sanction or roi ( % ) as on 29.02.2020 India ’ s leading housing companies... The eligibility amount of upto Rs.2 crore March 2020 to avail the benefit of the lending institutions finalise. Employee / self-employed professional had availed of a personal loan from Bank which has been repaid borrowers who have accounts! Hdfc DB card included for arriving at the Rate of interest on the basis information. Borrowers by November 5 or fully ) and not taken moratorium facilities a to... Etc are agriculture and allied activities loans and borrowers who are not part of the ex relief., cumulative and non-cumulative interest plan ( quarterly ) or annual income plan, cumulative and non-cumulative interest plan quarterly... Case of credit card dues is the ex gratia relief will be in. Included for arriving at the eligibility amount of not exceeding Rs not part of the virus Bank... Feb 2020 are eligible under the scheme Rate of interest gratia payment to the account will not a...