Scheme For Grant Of Ex-gratia Payment
For Difference In Interest

Frequently Asked Questions (FAQs)

The 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 up to Rs. 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.

  • The relief shall cover the following segments – MSME Loans, Education loans, Housing Loans, Consumer Durable Loans, Credit Card Dues, automobile loans, personal loans to professionals and Consumption loans.
  • Loan accounts with sanctioned limits and outstanding not exceeding Rs. 2 crores (aggregate of all facilities with all the lending institutions) as on 29.02.2020.
  • Loan accounts should be standard in the books of the lending institutions as on 29.02.2020.
  • The period reckoned for the refund shall be from 1st March 2020 to 31st August 2020, i.e. 6 months period / 184 days.

There is no need for an application. The ex-gratia relief will be credited to the account of all eligible borrowers without any requirement to apply.

Individual banks/ lending institutions will finalise the list of eligible borrower for the relief based on the guidelines issues by Govt. of India.

We will assess this on the basis of information available with us as well as information accessible from credit bureaus.

The guidelines state that the loan should not be a Non Performing Asset (NPA) as on 29.02.2020.

Yes! Irrespective of whether you have availed the moratorium (fully/ partially), you will be eligible for the ex-gratia scheme.

Yes, the scheme includes partly disbursed loans provided that the sanctioned and outstanding amounts do not exceed Rs. 2 Cr. The outstanding as on 29.02.2020 shall be the reference amount for calculating the differential interest amount.

The amount will be credited to your respective loan account(s) directly.

If your account is closed between the said period, you are eligible for refund of differential interest from 1st March, 2020 up to the date of closure of account (not later than 31st August, 2020). You can communicate your bank account details where you want the amount to be credited.

  1. Education loans, Housing loans, Automobile loans, Personal loans to professionals and Consumption 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.
  2. MSME:
    • Term Loans/ Demand Loan: The rate of interest for the purpose of calculating the differential will be the contracted rate as specified in the loan agreements/ documentation applicable as on 29th February 2020. Any repayment / credits subsequent from 01.03.2020 – 31.08.2020 shall be ignored for the purpose of calculation.
    • Cash Credit/ Overdraft: Simple interest for the period will be calculated based on daily outstanding as at end of the day at rate of interest prevailing as on 29.02.2020. Compounding of interest shall be at monthly rests.

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If you have not received the credit for ex-gratia, kindly grievance redressal form and our team will update you shortly. Click Here

If you have not received the credit for ex-gratia, kindly grievance redressal form and our team will update you shortly. Click here.