FAQs on Ex-Gratia
FAQs on Ex-Gratia Scheme announced by the Government of India
What is the ex-gratia scheme announced by GOI?
Banks/Lending institutions 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 2 crs (aggregate of all the borrowings/facilities from all banks and financial institutions) from the period 1st March 2020 to 31st August 2020.
Which loans are covered under this scheme?
Relief will be provided to MSME loans, Education loans, Housing loans, Consumer durable loans, Credit card dues, automobile loans, personal loans to professionals and consumption loans. Only standard assets as on 29th February 2020 will be considered for the scheme.
Do I have to apply for the relief?
No. The ex-gratia relief will be credited to the eligible borrowers loan accounts without application from borrower.
Are all borrowers eligible for the relief even if they have not availed moratorium?
Yes. The relief is available to all eligible borrowers who fulfill the criteria as explained in point no 1, irrespective of whether they have availed, partially availed or not availed the moratorium on repayment provided by the lender during this period.
Will borrowers who have closed their loan during the said period ie 1st March 2020 to 31st August 2020 be eligible for this scheme?
Yes. Such borrowers will be eligible for refund of differential interest from 1st March 2020 till the date of closure.
Where will the differential interest be credited?
The differential interest will be credited to the respective loan accounts. In case of closed loans they will be credited to the bank account provided by the borrower.
What will be the rate considered for calculating the differential interest as per the scheme?
For MSME Loans – the rate used for calculating the simple and compound interest will be the contracted rate as specified in the loan agreements / documentations as applicable on 29th February 2020.
What will be the treatment of repayments/credits made in my loan during the period from 1st March 2020 to 31st August 2020?
The outstanding as on 29th February 2020 will be the reference amount for calculating the differential interest. Any repayments done during this period will be ignored for the purpose of calculation.
How can I flag my Grievances related to this relief package?
The borrowers can flag of their grievances as per the grievance redressal policy available on our website.
