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Great relief from Central Government in Loan Moratorium case, interest will not be given on loan interest


Great relief from Central Government in Loan Moratorium case, interest will not be given on loan interest 1

new Delhi. Amid Coronavirus Pandemic, the Central Government has given a big relief to the borrowers by telling a big news. The government has filed an affidavit to the Supreme Court that from now on, if the loan of MSME loan, educational, housing, consumer, auto, credit card is not given on time, then the compound interest on it will be waived. According to the government order, after taking a loan of up to two crore rupees in the loan moratorium time of 6 months, the interest which was charged on the interest will now be exempt. The Center has said that in view of the situation at the time of corona virus epidemic, the government will now bear the burden of tax exemption on taxpayers. Along with this, the Central Government has said that permission will be sought from Parliament for suitable grants.

What does it mean
Actually, this problem started after the arrival of the corona-like epidemic. Due to which the lockdown was implemented in the entire country in March. On the other hand, it has also made millions of people unemployed. Due to the shutdown of business, people started facing the biggest problem when they were exposed to the EMI of the loan taken. Which he was unable to repay. In view of such a situation, the government ordered the Reserve Bank of India (RBI) to give 6 months time for not repaying EMI from banks. But still this problem persisted. Now the biggest problem came over him that the EMI of the loan was not able to be repaid first, after that interest would be charged on it. Which was becoming a big burden for the customers taking loans. The Central Government has given this great relief in view of the same problems of customers. Now people will not have to pay extra money on interest charged on people. Such customers will pay only the simple interest of the loan.

Supreme Court reprimanded the Central Government
Explain that in August, the Supreme Court had reprimanded the Central Government in the Moratorium case. And had said that the central government should clear its stand by filing an affidavit in this regard and should not try to protect itself by taking the name of the Reserve Bank. Not only this, the Supreme Court had also told the Central Government that it is only showing interest in business and not taking care of people’s problems which is their biggest duty.

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