Will you Get
Compound Interest Waiver on Loan Account Sold by One Bank to Another? Check New
FinMin FAQs
Compound interest waiver on commercial
vehicles, sold loan account by bank: Will you benefit from the interest waiver scheme if your
loan account was sold to another lender by your bank? The answer is Yes, according to a new clarification issued by the Finance
Ministry.
The Finance Ministry on Tuesday
released some new FAQs to clear doubts of borrowers. It says that individual
loans sold by one lending institution to another would be eligible under the
Scheme.
“Yes, accounts of the eligible category of
loans are covered under the Scheme including loans accounts of individuals
bought as part of pool buyouts by one lending institution from another,” the
ministry said.
As per the FAQs, commercial vehicle
automobile loans of individuals are covered under the scheme. “Automobile loans
including for commercial vehicles, such as four-wheeler taxi, are eligible under
the scheme.”
The FAQs also say that “standard”
accounts from eligible categories of the borrower as on 29.2.2020 in a lending
institution are covered under the Scheme.
“Yes. Accounts of eligible category of
borrowers which are standard as on 29.2.2020 are covered under the Scheme,
i.e., the loan should not be a nonperforming asset (NPA) as on 29.2.2020 in the
lending institution concerned.”
Under the Interest Waiver scheme, the govt aims to provide benefit to all borrowers by returning
the difference of Compound interest and simple interest during the six months
of loan moratorium announced by RBI. To qualify for the scheme, the loan account should not be
of more than Rs 2 crore.
In another FAQs released on October
29th, the ministry had said that credit card dues outstanding on 29-02-2020
would be considered for giving relief to borrowers. And the benchmark rate
applicable for such relief would be the contract rate (WALR) as on 29-02-2020.