FAQs on Ex-Gratia


FAQs on Ex-Gratia Scheme announced by the Government of India

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.

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.

No. The ex-gratia relief will be credited to the eligible borrowers loan accounts without application from borrower.

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.

Yes. Such borrowers will be eligible for refund of differential interest from 1st March 2020 till the date of closure.

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.

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.

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.

The borrowers can flag of their grievances as per the grievance redressal policy available on our website.

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