Centre to waive compound curiosity on mortgage

New Delhi, October 3

The Centre has agreed to waive “interest on interest” charged on loans up to Rs 2 crore for “most vulnerable category of borrowers” for the six-month moratorium announced by the RBI in view of Covid-19.

In an affidavit filed in the Supreme Court, the Finance Ministry said the concession would be given to eight categories, including housing, education, MSMEs (micro, small and medium enterprises), consumer durable, credit card dues, auto, personal and consumption loans, irrespective of whether a borrower availed of moratorium or not.

After careful consideration and weighing all possible options, the government has decided to continue the tradition of “hand-holding of small borrowers”, the Centre said even as it clarified that the concession won’t be applicable to loans above Rs 2 crore. — TNS

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