New Delhi: In a big relief to retail and MSME (Micro, Small and Medium Enterprises) borrowers who are facing hardship due to the impact of COVID-19 pandemic, the Centre on Friday told the Supreme Court that it has decided to ‘waive interest’ on loans of up to Rs 2 crore during the six-month moratorium period. Also Read – Atal Tunnel: PM Modi Inaugurates Strategically Important All-weather World’s Longest Highway Tunnel in Rohtang
Loans taken by individuals for educational, housing, consumer goods and auto loans and for credit card dues can also avail the benefit. Besides, those who have cleared their loan dues during the moratorium period will also get the benefit, a report published in a leading daily said. Also Read – Prashant Bhushan Challenges Supreme Court Against Re 1 Fine Over His Tweets
The finance ministry, in an affidavit, submitted before the court asserted that under pandemic conditions, the government has decided to maintain its tradition of handholding small borrowers and bear the burden of waiving of interest. Also Read – UPSC Prelims 2020: SC Declines to Postpone Civil Services Examination Due to COVID Pandemic
The Times of India has reported that the government’s decision follows the recommendations of an expert committee headed by former Comptroller & Auditor General Rajiv Mehrishi.
The RBI had announced a moratorium on repayment of debt for six months beginning March 1, 2020, to help businesses and individuals tide over the financial problems on account of disruption in normal business activities. The six-month moratorium period ended on August 31.
Earlier last month, the Centre had informed the SC that the moratorium on repayment of loans can be extended by two years in line with the Reserve Bank of India’s (RBI) circular.
