Central Government Cash Back Offer for Moratorium paid customers : Central Government is giving Cash back offer. To the persons. Those paid their loan installments regularly. In the time of moratorium period.
Since, COVID-19 many people to lost their jobs and source of income. In spite, lot of customers opted moratorium. To get relief from the loan installments.
no interest on interest
RBI announced moratorium from March onwards. In spite, it is only temporary relief. To the customers. After the moratorium period. Customers has to pay interest on the loan interest.
Hence, Supreme Court Questioned the Central Government. “What is the benefit of the Moratorium?”. Hereafter, Central Govt came forward. To bear the interest of moratorium. Which is imposed on the loan interest.
Cash back to the paid Customers
According to the RBI announcement. Afterward, So many people and small, medium scale industries. Paid their loan amount regularly. To cut off the interest on interest, even they had tough time due to COVID-19.
Cash Back beneficiaries by Central Govt
Central Govt submitted the affidavit to the Supreme Court. That they don’t collect interest on loan interest. From the moratorium opted customers. As well as, Govt stated that they are going to pay back the equal amount of the interest.
Subsequently, To the regular and dedicated paid customers. There is no clarity about the estimation amount. From the Central Govt.
Beneficiaries of this cash back
Central Govt planning to give this cash back only to the customers. Those have taken loans below 2 crores. Not to all.
“Overall, it is helpful to the customers around 30% to 40%”
Said by ‘Information and Credit rating agencies’ vice president – Anil Gupta. Central Government will bare almost 5 to 7 thousand crores for this.
Also Read : Central government Decision on waiving compound interest on loans
Cash Back Offer for Moratorium paid customers
The decision of the government is not easy to settle all. Because, some people opted the moratorium for three months. Some are for six months. Banks has to modify their software.
Subsequently, the financial experts say, “It may take lot of time to get exact data of the beneficiaries and also for the settlement of the cash back”. However, the decision taken by the Central Government is very helpful.
