All the over dues charges and other penal interest shall continue to apply on all borrowers as may be applicable. Which Rate of Interest (%) shall be considered for calculating the package, i.e. Whether eligible accounts foreclosed during the period of 1.3.2020 to 8.2020 are covered under the scheme? 3. What is the ex gratia payment to the borrower under the scheme announced by GoI? 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. Know about joining fees, annual fees & various other charges by HDFC Bank. If I have already closed my loan account after March 1st 2020 , how will the differential amount be paid to me? 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 Apply Online for HDFC … settled amount) in the account as on 29.02.2020 will be the reference amount. the monthly income plan, cumulative and non-cumulative interest plan (quarterly) or annual income plan. Ex-Gratia On Loan Moratorium Applicable For All At the start of this month, some credit card providers … 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. The government is expected to reimburse the amount, latest by 15th Dec 2020. 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. To provide hassle free and convenient services HDB introduces Missed … The statutory redundancy element is income tax free. Now that the moratorium period is over, the government will grant borrowers ex-gratia payment of the difference between the compound interest and the simple interest … 20. 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. 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. 6. 17. 4. Who will finalise the list of eligible accounts? 1) The scheme mandates ex-gratia payment by way of crediting the difference between compound interest and simple interest for the the period of six months — 1 March, 2020- … 4. Whether consumption loans with gold as collateral security are covered under the Scheme? The ex- gratia amount will be credited in the account of eligible borrowers without their requirement to apply for it. 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. Check new rules on Business Standard. The outstanding as on 29.02.2020 shall be the reference amount for calculating the differential interest amount. The compound interest works out to a very small amount. d. The period reckoned for refund shall be from 1st March 2020 to 31st August 2020, i.e. Such payments include compensation due or The ex-gratia relief will be credited to the account of all eligible borrowers without any requirement to apply, it said. 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). Called the scheme for grant of ex-gratia payment of the difference between compound interest and simple interest for six months to borrowers in … 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. You are now one Missed Call away from #ReimaginingOpportunities. Loans against securities and fixed deposits from a recognized bank. No. The period reckoned for refund shall be from March 1 to August 21, 2020, that is six months period or 184 days, it said. Ex-Gratia On Loan Moratorium Applicable For All. Guidelines for Visitors at HDFC Offices. 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. What is settled amount for credit card dues? 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. Ex-gratia payment made voluntarily by an employer is not taxable as ‘profits in lieu of salary _____ 24 December 2015 Background Section 17(3) of the Income-tax Act, 1961 (the Act) brings certain payments such as profits in lieu of salary within the ambit of ‘income from salaries’. Yes. Read everything about this scheme here. 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. 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. loan moratorium Centre issues guidelines for loan interest waiver, check how much money may be returned. Any repayment / credits subsequent from 01.03.2020 – 31.08.2020 shall be ignored for the purpose of calculation. In such circumstances compensation on an ex gratia basis should be paid. 3. 1. … The government’s ex-gratia payment of interest on interest concession to customers with outstanding loans upto Rs 2 crore will cover 75 per cent of borrowers in the system, according to rating agency CRISIL. MUMBAI: In the next few days, banks will credit lakhs of loan accounts with an ex-gratia payment equal to the interest on interest amount they have paid during the lockdown. Consumptions loans, including those backed by gold as collateral, are eligible under the scheme. 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.) 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. Bad borrowers, whose loan has been considered as non-performing assets or they have delinquent on their EMI payments before February 29, 2020. Is the loan eligible for ex-gratia payment under the scheme? No. 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). 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. 2. 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? The government clarified that borrowers will be entitled to get a refund on an aggregate sum of Rs 2 crore However, as the matter is in the Supreme Court, the government will communicate the decision to the court first. 5. 9. Copyright © TaxGuru. Accounts of eligible category of borrowers which are standard as on 29.2.2020 are covered under the Scheme, i.e., the loan should not be a nonperforming asset (NPA) as on 29.2.2020 in the lending institution concerned. Those who had not availed the moratorium will also get the Whether crop loans and other agriculture loans are covered under the scheme? 1) The scheme mandates ex-gratia payment by way of crediting the difference between compound interest and simple interest for the the period of six months — 1 March, 2020- 31 August, 2020. Yes. In which of my accounts will the differential amount be credited? I got it for all my secondary cards - ICICI, Amex but not on my primary HDFC DB card. Eligibility: The Credit Card outstanding (i.e. 2. For illustration: Authorisation amount locked at the time of hotel check-in (which is released at the time of check-out) would not be considered as part of the settled amount for calculation of credit card dues. Please help, Your email address will not be published. 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. Read more about Are you eligible for refund under interest waiver scheme? 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. Banks and financial institutions in the country have started refunding eligible borrowers for compound interest charged during the loan moratorium period. 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 … Settled amount in case of credit card dues is the amount outstanding again’ st the actual transactions. A salaried employee / self-employed professional had availed of a personal loan from bank which has some amount outstanding as on 29th February 2020. Whether two-wheeler loans are covered under the scheme? The period reckoned for refund shall be from March 1 to August 21, 2020, that is six months period or 184 days, it said. Why Is Advertising Important For SME Growth In India? What are the main features of the ex gratia to borrowers scheme? 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. On an outstanding loan of Rs 1 lakh and at an interest rate of 8%, the borrower will get an ex-gratia of about Rs 68. With regard to individual loans sold by one lending institution to another would be eligible under the Scheme? For consumer durable loans, the rate of interest which will be applied for calculating the interest on interest benefit shall be contracted at the same rate as specified in the loan agreement. 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. 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 package will be available for eligible borrowers irrespective of whether they have availed or partially availed or not availed the moratorium on repayment announced by RBI vide DOR. 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. The loan will entail only simple interest. Date 4th November 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 … The ex gratia termination payment … The differential amount will be credited to the respective loan account(s). Here's why 2 ... 2020 to avail the ex-gratia payment. Is Interest payable when incorrectly levied penalties are repaid? The period reckoned for refund shall be from March 1 to August 21, 2020 that is six months period or 184 days, it said. Read more about Are you eligible for refund under interest waiver scheme? COVID 19 Ex Gratia to borrowers for difference in interest 8. 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. Interest Waiver & Cashback Scheme – Mar 2020 to Aug 2020. It will be credited to your savings/ current account and if you do not maintain any such account with the lending institution, you can advise the lending institution the details of the account in other banks where the amount can be credited /remitted to. Ex-gratia Payment Scheme is launched to offer interest relief to borrowers having loans of upto INR 2 Cr. 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. are not eligible for coverage under the scheme. Date 3rd November 2020. Automobile loans including for commercial vehicles, such as four-wheeler taxi, are eligible under the scheme. 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). It is the differential amount between the Compound Interest and the Simple Interest charged during the moratorium period. 1. It was supposed to be released by 5th Nov. The waiver Interest rates for Small Savings Schemes w.e.f. Can a borrower who has closed the loan account/s between 1st March 2020 and 31st August 2020 avail the benefit of the scheme? 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. Such borrowers are eligible for refund of differential interest from 1st March 2020 upto the date of closure of account (not later than 31st August 2020). All Rights Reserved. Lending institutions can lodge their claims for reimbursement latest by 15th Dec 2020 only after crediting amounts. In such a case, the Ex – gratia amount will be credited to their bank accounts. Under the ex-gratia scheme of government, any loan of up to Rs 2 crore taken before February 29, 2020 will not be charged with compound interest from March 1 to August 31, 2020. No. 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. The ex-gratia payment of 'interest on interest' will be applicable for six months and only for selective specified loans, sources added. Read more! The ex gratia relief will be credited to the account of all eligible borrowers without any requirement to apply. Whether micro loans guaranteed by Joint Liability Group (JLG) are covered under the Scheme? 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). What will be the treatment of penal interest/ penalties while arriving at the rate of interest? No. 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 Where to invest money in India (to make it work for you)? 19. 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. COVID 19 Ex Gratia to borrowers for difference in interest. The lending institutions have been asked to complete the exercise of crediting the amount in the accounts of borrowers by November 5. 1. 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 A claim should be pre audited by the statutory auditor of the lending institutions and a certificate in this regard shall be attached to the claim. Under this scheme, the banks and the NBFCs have started crediting the differential amount between the compound interest and the simple interest in the loan or bank accounts of the borrowers that have been generated during the moratorium period. Non fund based limits will not be included for arriving at the eligibility. The relief package charges by HDFC Bank in the Supreme Court, accounts. Considered as non-performing assets or they have delinquent on their EMI payments before 29! 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