Business Desk, ETV Bharat: In a bid to provide relief to gold loan borrowers, the central government has clarified that these loan accounts would also be eligible for a cashback from their lenders under the ‘interest on interest’ waiver scheme.
This means that gold loan borrowers would be getting back any interest they might have paid on the interest portion of their loan amount for the period between 1 March 2020 and 31 August 2020.
“Consumptions loans, including those backed by gold as collateral, are eligible under the scheme,” the ministry of finance said in a second set of FAQs (frequently asked questions) released on Covid-19 Ex-Gratia to borrowers for difference in interest scheme.
The guidelines had earlier said that borrowers with loans of up to Rs 2 crore availed across categories like micro, small and medium enterprise (MSME) loan, education loan, housing loan, consumer durables loan, credit card dues, auto loan, personal and professional loan and consumption loan are covered under this scheme.
However, only those loan accounts which were standard and not non-performing assets (NPAs) as on 29 February 2020 were eligible for the benefit irrespective of whether they availed the moratorium or not.
With the deadline to credit the amount being 5 November 2020, banks and NBFCs today deposited the interest-on-interest amount in all eligible loan accounts.
