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. ����p��J�9���u�蝂k\S�: R�+�&Y�3�^�| The waiver of compound interest on loans has aroused a lot of interest. Scheme of ex gratia payment of difference between compound interest and simple interest..” Scheme for grant of ex gratia payment of difference between compound interest and simple interest for six months to borrowers in specific loan accounts Format For Submission Of Information By Lending Institutions RBI has ordered the lending institutions to complete the process crediting the amount in the accounts of borrowers by 05 November. Please note, Automobile Loans refers to all Vehicle Loans. To read the scheme announced by the Government of India (GoI), Ministry of Finance (vide no. Ex-Gratia On Loan Moratorium Applicable For All. Main features of the ex gratia payment Scheme: ... Housing Loans, Consumer Durable Loans, Credit Card Dues, automobile loans, personal loans to professionals and Consumption loans. The bank/ lending institution will provide ex gratia payment to the borrower account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding upto Rs. �� ����`#���`;ix(��|=3���z]=D���7M�`5�����8���g�,;J������� %�0mNp���n�8��O�D��/���$��@� N�Pi�4��y�A-D&5�H�_ �a�qwB��7͚� � What will be the treatment of penal interest/ penalties while arriving at the rate of interest? “This is a very straightforward scheme. Those borrowers who have loan accounts with sanctioned limits and outstanding amount of up to 2 crores as on 29th February 2020, shall be eligible under the Scheme. 16. Scheme for grant of Ex-gratia payment of difference between compound interest and simple interest for six months to borrower in specified loan accounts (01.03.2020 to 31.08.2020) (2.85 MB) FAQ on COVID-19 Ex-gratia to borrowers for difference in interest dated 26.10.2020. Here are the FAQs. Ex Gratia Payment is a scheme announced by Government of India for the payment of the difference between compound interest and simple interest for six months to the borrowers on loan accounts with sanctioned limits and outstanding upto Rs. People who took a bank loan up to Rs 2 crore will benefit from this ex-gratia from banks. Eligibility and Dates of Reserve Bank of India Ex Gratia Scheme . Yes. 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. Updated: 09 Nov 2020, 05:21 PM IST Tinesh Bhasin. 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. 2 crore (sanctioned limits or outstanding amount) will not be eligible for ex-gratia payment under this scheme. • The period reckoned for refund shall be from 1st March 2020 to 31st August 2020, i.e. They are getting a message from the card issuing bank or institution these days that the money has been deposited in their account of the government’s EX Gratia Scheme. loan eligible for ex-gratia payment under the scheme? 5) Credit card dues 6) Automobile loans 7) Personal loan to professionals 8) Consumption loans Any borrower whose aggregate of all facilities with lending institutions is more than Rs. endobj stream Any repayment / credits subsequent from 01.03.2020 – 31.08.2020 shall be ignored for the purpose of calculation. 1.3.2020 to 31.8.2020, to the eligible borrowers in specified loan accounts, click here No. If you … The loan will entail only simple interest. The bank/ lending institution will provide ex-gratia payment to the borrower account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding upto Rs. The bank / lending institution will provide ex gratia payment to the borrower account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding upto Rs. 3 0 obj 1 0 obj Consumer Durable Loans, Credit Card Dues, Automobile loans, Personal loans to Professionals and Consumption loans. 5) Credit card dues 6) Automobile loans 7) Personal loan to professionals 8) Consumption loans Any borrower whose aggregate of all facilities with lending institutions is more than Rs. What are the main features of the ex gratia to borrowers scheme? BP.BC.47/21.04.048/ 2019-20, dated 27.3.2020 and extended on 23.5.2020. Mrchecker.net is free credit card checker. 2 crores (sanctioned limits or outstanding limits) will not be eligible for ex-gratia payment under this scheme) What is the ex gratia payment to the borrower under the scheme announced by GoI? 6 months period / 184 days. What will be the treatment of penal interest/ penalties while arriving at the rate of interest? New Delhi: The Reserve Bank of India (RBI) issued direction on Tuesday to all lending institutions to implement provisions of Scheme for grant of ex-gratia payment of difference between compound and simple interest for six months to borrowers in specified loan accounts (1 March to 31 Aug) and take necessary action within the stipulated time. It will not be calculated based on the rate charged on revolving the credit card balances. 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. The scheme mandates the ex-gratia payment to specific borrowers’ categories by crediting the difference between simple interest and compound interest between March 1, 2020, to August 31, 2020 , by the respective lending institutions. Ex Gratia Payment. The Ex-Gratia payment under this scheme shall be applicable if you fall under below categories: (1) had fully availed or partially availed or not availed of the moratorium on repayment announced by RBI ride its circular DOR. Loan accounts should be standard in the books of the lending institutions as on 29.02.2020. For more details on the Scheme, please refer FAQs issued by the Government. The Government of India has announced the scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts (01-03-2020 to 31-08-2020) (the ‘Scheme’) on 23-10-2020, which mandates ex-gratia payment to certain categories of borrowers by way of crediting the difference between simple interest and compound interest … Whether Accounts categorised as SMA-0, SMA-1 and SMA-2 are eligible to avail the benefit of the package? 2/ 12/2020-BOAI, dated 23.102020 (vil) Personal loans to professionals (viil) Consumption loans Any borrower whose aggregate of all facilities with lending institutions is more than Rs. COVID-19 EX GRATIA SCHEME. d. The period reckoned for refund shall be from 01-03-2020 to 31-08-2020, i.e. 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. 6 months period / 184 days. You may still get ex-gratia payment 3 min read. Ex-Gratia On Loan Moratorium Applicable For All At the start of this month, some credit card providers surprised their customers as they credited the government’s ex-gratia money to … Therefore, there will be no 'interest on interest'. 6 months period / 184 days. x��\�S�H��NU�}���y��S�\0Y ��]m��ƨ�X�e���t��ȒFċ�l�[��{f�����::^�˻�v�}{t�^���i���u������Oż\�Z]=ݬ��O�b:[�{�?= ��� %PDF-1.7 Which Rate of Interest (%) shall be considered for calculating the package, i.e. Scheme for grant of Ex-gratia payment of difference between compound interest and simple interest for six months to borrower in specified loan accounts (01.03.2020 to 31.08.2020) (2.85 MB) FAQ on COVID-19 Ex-gratia to borrowers for difference in interest dated 26.10.2020. Compounding of interest shall be at monthly rests. The period reckoned for refund shall be from 1st March 2020 to 31st August 2020, i.e. endobj Kind of Loans and Borrowers Eligible for the Ex – Gratia Relief Scheme. No. The contracted rate / interest rate prevailing as on 29.02.2020 which is considered for calculating the interest differential will exclude any penalties or any penal rate of interest applied in the account. <>/ExtGState<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> in each of my loan account and credit card i have received around … Yes. No. What is the time-period for credit/payment of ex-gratia amount by the lender? The period reckoned for refund shall be from 1st March 2020 to 31st August 2020,i.e. 6 months period / 184 days. How will the lending institution assess whether a borrower has aggregate loan facilities upto Rs.2.00 cr from the banking system? Loans for consumption purposes (e.g., social ceremonies, etc.) In which of my accounts will the differential amount be credited? F. No.2/12/2020 – BOA.I dated 23rd October, 2020), for grant of ex-gratia payment of difference between compound interest and simple interest for six months i.e. In view of the unprecedented and extreme COVID-19 situation, the object of the Scheme is to provide ex-gratia payment of the difference between compound interest … In respect of Housing loans, the rate of interest to be applied for calculating the differential interest component shall be the contracted rate as specified in loan agreements / documentation applicable as on 29th February 2020. D��0�:Hu�Ip� �}�J�y cs���o��> 6 months period / 184 days. The period reckoned for refund shall be from 1st March 2020 to 31st August 2020, i.e. No. The government had asked the lending institutions to complete the exercise of crediting the amount in the accounts of borrowers by … The ... and whether ex-gratia on credit card will be available on outstanding as on that date or on the amount rolled over. No. How will the interest be calculated for cash credit/ overdraft accounts? No. 2 crores (sanctioned limits or outstanding limits) will not be eligible for ex-gratia payment under this scheme) In view of the unprecedented and extreme COVID-19 situation, the object of the Scheme is to provide ex-gratia payment of difference between compound interest and simple interest by ways of relief for the period from 1st March 2020 to 31st August 2020 to borrowers in specified loan accounts. The Ex-Gratia Payment Scheme is the payment of the difference between the Compound Interest and the Simple Interest for six months ending 31 August 2021 to borrowers in specified loan accounts. The Government of India has announced the Scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts (1.3.2020 to 31.8.2020) (the ‘Scheme’) on October 23, 2020, which mandates ex-gratia payment to certain categories of borrowers by way of crediting the difference between simple interest and compound interest … 4 0 obj Yes. Whether “partly disbursed loans” are covered under the relief package? People who have dues in credit cards are also entitled to claim this fund. Ex-Gratia Payment Scheme. To bring financial relief to borrowers in the view of Covid-19 situation, RBI along with Department of Financial services has introduced a "Scheme for grant of ex gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts." Loans for consumption purposes (e.g., social ceremonies, etc.) The scheme for grant of ex-gratia payment is also known as the waiver of ‘interest on interest’ scheme. Yes. 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. 2 Cr. No. 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? %���� Photo: iStock Paid credit card bills on time? <>/Metadata 227 0 R/ViewerPreferences 228 0 R>> Ex-gratia will not be paid on those credit cards where balance is in “credit” as on 29 th February 2020. What will be the treatment for the repayments / credits made in term loan during the period from 1st March 2020 to 31st August 2020? Is the loan eligible for ex-gratia payment under the scheme? Lending institutions are to assess this on the basis of information available with them as well as information accessible from credit bureaus. On 23rd October 2020 Ministry of Finance, Government of India issued direction to all lending institutions to implement Scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts (1.3.2020 to 31.8.2020). … <> EX Gratia Scheme of Govt of India: Credit card holders are getting good news these days. The waiver scheme is made to reimburse the compound interest charged during the given period. "The scheme will be applied on 6 months period from 1st March 2020 to 31st August 2020. 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. BP.BC.47/21.04.048/2019-20 dated 27.03.2020 and extended on 23.05.2020. The Reserve Bank of India had announced a moratorium for 6 months from March 1 to August 31 following the outbreak of COVID-19. No. 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). Will I be eligible for relief if my credit card balance is in “Credit” as on 29.02.2020? The scheme mandates ex-gratia payment to certain categories of borrowers by way of crediting the difference between simple interest and compound interest for the period between March 1, 2020 to August 31, 2020 by respective lending institutions. Guidance on how ex-gratia payments are managed and resolved, and how actual and non-financial losses are assessed by UK Visas and Immigration, Immigration Enforcement and Border Force. Tractor loans are excluded from this ex-gratia scheme. 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