Centre ready to waive interest on interest during moratorium
Centre ready to waive interest on interest during moratorium The Centre has told the Supreme Court that it is ready to waive certain interest levies on loans of up Rs 2 crore under moratorium. This essentially means compound interest or interest on interest will be scrapped for loans taken out for purposes including education, housing and credit-card dues, a move that will bring relief to millions of borrowers, including those who have cleared their dues for a range of loans made between March and August. The government will bear the burden of the money, the finance ministry said in an affidavit filed in the Supreme Court. “This category of borrowers, in whose case the compound interest will be waived, would be MSME loans and personal loans up to Rs 2 crore of the following category — MSME loans, educational loans, housing loans, consumer durable loans, credit card dues, auto loans, personal loans to professionals and consumption loans,” the ministry said in its affidavit. The Re...