Government will pay interest if you have taken Moratorium
The Central Government has filed an affidavit in the Supreme Court that the compound interest applicable on MSME, Education, Home, Consumer, Auto loans will be waived. Apart from this, this interest will not be collected even on credit card dues. This rule is only for loans up to two crore rupees.
In order to provide financial relief to the people in the lockdown, the Reserve Bank had given the facility of postponing EMI payment (moratorium). This facility started from last March till 31 August i.e. for a total of 6 months.
Relief given due to strictness of court
However, after the strictness of the Supreme Court, relief has been given by the government on the additional interest on bank loan or credit card moratorium. The Central Government has filed an affidavit in the Supreme Court that the compound interest applicable on MSME, Education, Home, Consumer, Auto loans will be waived. Apart from this, this interest will not be collected even on credit card dues.
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