Modi Government Decides Not to Charge Extra Interest on EMI of Loans up to Rs.2 crore for 6 Months

Beneficiaries from small and medium industries to car-home borrowers ...

Economy Interest News

New Delhi: Indian Economy News: Good news for the public in the EMI suspended case. Customers who take advantage of the Reserve Bank’s moratorium on lockdown do not have to pay interest on interest. The center has heard the news of relief.

The finance ministry told the Supreme Court on Saturday that the central government would bear the interest burden on loans up to Tk 2 crore. As a result, the bank will not suffer any loss as the customer will not have to pay interest on the interest.

This will benefit small and medium enterprises, home-car loans, education loans, private borrowers. Those who have deferred credit card bills will also benefit.

Following the instructions of the Reserve Bank, several banks have decided to suspend EMI for 3 to 6 months to provide relief to the general public in the event of a lockdown.

Initially, it seemed like a relief to the general public, but later, economists said that if the EMI on car-home loans was suspended for three months, the extra interest would have to be calculated later. You have to pay several extra EMIs.

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Then came the storm of controversy across the country. The case was filed in the Supreme Court. The Supreme Court has asked the Center to clarify its position on the suspension of EMI of loans in Corona-Abe. The Supreme Court questions how reasonable it is to charge interest on interest.

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