Govt Ready to Waive Interest on Loans Up to Rs 2 Crore, Says it’s the ‘Only Solution’ Amid Pandemic

“Under pandemic conditions, the only solution is for the government to bear the burden of waiving of interest,” the government has said in an affidavit submitted on Friday.

“This category of borrowers, in whose case the compound interest will be waived, would be MSME loans and personal loans up to Rs 2 crore of the following category—MSME loans, education loans, housing loans, consumer durable loans, credit card dues, auto loans, personal loans to professionals and consumptions loans,” a Times of India report quoted the Finance Ministry as stating.

The interest waiver will apply for loans taken by MSMEs (Micro, Small and Medium Enterprises) for educational, housing, consumer goods and auto loans and for credit card dues.

The RBI had announced a moratorium on repayment of debt for six months to help businesses and individuals tide over the financial problems on account of disruption in normal business activities.