01.01.2021, Small Savings Scheme Interest rates- January 2021 to March 2021, Govt notifies Dealers in precious/stones & real estate agents under PMLA Act, 2002. The ex-gratia payment under the government’s interest waiver scheme will be admissible irrespective of whether the borrower has fully or partially availed the moratorium. The relief will come to borrowers in the form of grant of ex-gratia payment of difference between compound interest and simple interest for six months (from March 1 to August 30). Check new rules on Business Standard. ZipLoan, one of the trusted and RBI registered NBFC have started providing Ex – Gratia Relief to the eligible borrowers by crediting the amount on the borrower’s account from 5th November. Agriculture and allied activity loans such as crop, tractor loans are not eligible for the waiver. How will the interest be calculated for cash credit/ overdraft accounts? Yes, the accounts classified as SMA-0, SMA-1 and SMA-2 as on 29th Feb 2020 are eligible for the relief package. The period reckoned for refund shall be from March 1 to August 21, 2020, that is six months period or 184 days, it said. 2 crore are eligible. Non fund based limits will not be included for arriving at the eligibility. 2 crores (aggregate of all the borrowings/facilities from all the banks and financial Institutions) for the period from 1st March 2020 to 31st August 2020 (6 months / 184 days). Join our newsletter to stay updated on Taxation and Corporate Law. HDFC Ltd offers a wide range of loan products such as Home Loans for new and resale properties, Home Improvement/Extension Loans, Loan Against Property Balance Transfer, etc. The bank/lending institution 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 up to Rs 2 crore (aggregate of all the borrowings/facilities from all the banks and financial Institutions) for the period from March 1 to August 31, 2020 (6 months / 184 days). HDFC Ltd is one of India’s leading housing finance companies. Accounts of eligible category of borrowers which are standard as on 29.2.2020 are covered under the Scheme, i.e., the loan should not be a nonperforming asset (NPA) as on 29.2.2020 in the lending institution concerned. In respect of term loans/demand loan, the rate of interest for the purpose of calculating the differential will be the contracted rate as specified in the loan agreements/ documentation applicable as on February 29, 2020. Interest-on-interest waiver: Crop, tractor loans not part of ex-gratia relief scheme (Eds: Recasting overnight story) zeebizindia@gmail.com (Zee Business) 3 days ago loan moratorium Centre issues guidelines for loan interest waiver, check how much money may be returned. at attractive interest rates. Ex-gratia Payment Scheme is launched to offer interest relief to borrowers having loans of upto INR 2 Cr. Where to invest money in India (to make it work for you)? While we shall continue to serve customers at our offices, in the interest of everyone’s health and safety, kindly visit our offices only in case it is absolutely necessary. Check new rules on Business Standard. The contracted rate / interest rate prevailing as on 29.02.2020 which is considered for calculating the interest differential will exclude any penalties or any penal rate of interest applied in the account. Know about joining fees, annual fees & various other charges by HDFC Bank. are also eligible for coverage under the scheme, besides other specified categories of loans like consumer durables, automobiles, education, credit card dues, housing and personal loans to professionals. Govt Giving Cashback To All Credit Card Users! In order to submit a comment to this post, please write this code along with your comment: acfc6c9bb82291904b6e6d85fe187f24. at attractive interest rates. Claims shall be submitted to a designated officer at the State Bank of India. BP.BC.47/21.04.048/2019-20 dated 27.03.2020 and extended on 23.05.2020. Ex-gratia will not be paid on those credit cards where balance is in “credit” as on 29.02.2020. Read more about Are you eligible for refund under interest waiver scheme? The ex gratia termination payment … The relief will be available to you irrespective whether you have availed or partially availed or not availed the moratorium on repayment as announced by RBI vide DOR. For illustration: Authorisation amount locked at the time of hotel check-in (which is released at the time of check-out) would not be considered as part of the settled amount for calculation of credit card dues. No. COVID 19 Ex Gratia to borrowers for difference in interest However, the loan will entail the simple interest charged during this period. The loan should not be a “Non Performing Asset (NPA) as on 29.02.2020. Individual loans from the eight eligible categories of borrowers, including those categorised as Micro, Small and Medium Enterprises (MSME) by the lending institution, are covered under the scheme irrespective of the nature of guarantee. Any repayment / credits subsequent from 01.03.2020 – 31.08.2020 shall be ignored for the purpose of calculation. Prevention of Money-laundering (Maintenance of Records) Fourth Amendment Rules, 2020. Read more! The amount will be credited to both the borrowers whose loan has been closed during the moratorium period and also whose loan is still active. Compounding of interest shall be at monthly rests. 10. 2 crores (aggregate of all the borrowings/facilities from all the banks and financial Institutions) for the period from 1st March 2020 to 31st August 2020 (6 months / 184 days). Will I also be eligible for Ex-Gratia interest refund? Whether crop loans and other agriculture loans are covered under the scheme? 19. The relief will come to borrowers in the form of grant of ex-gratia payment of difference between compound interest and simple interest for six months (from March 1 to August 30). 2. COVID 19 Ex Gratia to borrowers for difference in interest The Government of India has announced a Scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts (01.03.2020 to 31.08.2020) Whether Accounts categorised as SMA-0, SMA-1 and SMA-2 are eligible to avail the benefit of the package? Those who had not availed the moratorium will also get the benefit of the scheme. Yes. 8. Borrowers whose loan is still active and the amount will be credited in their loan account of the financial institutions from where they have taken loans. No. No. 17. The outstanding as on 29.02.2020 shall be the reference amount for calculating the differential interest amount. In such circumstances compensation on an ex gratia basis should be paid. Individual banks/ lending institutions will finalise the list of eligible borrower for the relief based on the GoI guidelines. If I have already closed my loan account after March 1st 2020 , how will the differential amount be paid to me? Maintained by V2Technosys.com, Taxguru Consultancy & Online Publication LLP, 509, Swapna Siddhi, Akurli Road, Near Railway Station, Kandivali (East), COVID 19 Ex Gratia to borrowers for difference in interest : FAQs. Did anyone get the "Ex-gratia refund" on their HDFC credit card yet? 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FREQUENTLY ASKED QUESTIONS (FAQs) HDFC Ltd offers a wide range of loan products such as Home Loans for new and resale properties, Home Improvement/Extension Loans, Loan Against Property Balance Transfer, etc. Is the loan eligible for ex-gratia payment under the scheme? Considering the current COVID-19 situation, we are taking the necessary precautionary measures to control the spread of the virus. Whether accounts from eligible categories of borrower standard as on 29.2.2020 in a lending institution are covered under the Scheme? Best viewed at 1024 x 768 resolution in IE 10 or above, Mozilla 30 or above, Google Chrome 20 or above, Safari 10 + × Whether two-wheeler loans are covered under the scheme? Settled amount in case of credit card dues is the amount outstanding again’ st the actual transactions. 13. Whether micro loans guaranteed by Joint Liability Group (JLG) are covered under the Scheme? 1. However, loans against fixed deposits [including Foreign Currency Non-Resident (Bank) {(FCNR(B)} account, bonds and other interestbearing instruments], and shares etc., and loans given for investment in financial assets (shares, debentures etc.) The outstanding as on 29.02.2020 will be the reference amount for calculating the differential. Are NPA accounts eligible for the relief package? What is settled amount for credit card dues? Whether “partly disbursed loans” are covered under the relief package? The rate of interest will be decided as per the following situations: ZipLoan, one of the trusted and RBI registered NBFC have started providing Ex – Gratia Relief to the eligible borrowers by crediting the amount on the borrower’s account from 5th November. This scheme shall be called “Scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts. 1) The scheme mandates ex-gratia payment by way of crediting the difference between compound interest and simple interest for the the period of six months — 1 March, 2020- 31 August, 2020. Eligible accounts foreclosed during the said period are covered under the scheme. Please help, Your email address will not be published. The rate of interest would be as prevailing on 29.2.2020, i.e., in case the rate of interest has changed thereafter, it shall not be reckoned for the purposes of this computation. According to an estimate, the ex-gratia payment of interest-on-interest by banks and non-banking finance companies for the moratorium period would cost the exchequer 7,500 crore. Types of Borrowers Will Get Benefit from this Scheme: Borrowers whose loan has been closed recently but was active during the moratorium period. 2. The compound interest works out to a very small amount. Date 29th October 2020. the monthly income plan, cumulative and non-cumulative interest plan (quarterly) or annual income plan. settled amount) in the account as on 29.02.2020 will be the reference amount. The waiver You must take into account that the interest on the loans continue to accrue in your account and results in higher costs. Yes. Yes. I got it for all my secondary cards - ICICI, Amex but not on my primary HDFC DB card. Last Friday, the government had announced the scheme for grant of ex gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts. Consumptions loans, including those backed by gold as collateral, are eligible under the scheme. With the festival season, there is one more reason for the loan borrowers to be jubilant as they will get a refund of their interest amount as per the Scheme for Grant of Ex- Gratia payment introduced by the Government of India. Interest rates for Small Savings Schemes w.e.f. 18. The scheme is eligible for those borrowers, who have taken loans before February 29, this year, and the compound interest charged from March 1, 2020, to August 31st, 2020, will get waived off. Automobile loans including for commercial vehicles, such as four-wheeler taxi, are eligible under the scheme. All the over dues charges and other penal interest shall continue to apply on all borrowers as may be applicable. The ex gratia relief will be credited to the account of all eligible borrowers without any requirement to apply, it said. What is the ex gratia payment to the borrower In which of my accounts will the differential amount be credited? What will be the treatment for the repayments / credits made in term loan/ demand loan during the period from 1st March 2020 to 31st August 2020? The ex gratia termination payment. Crop loans and tractor loans etc are agriculture and allied activities loans and are not part of the eight segments/classes eligible under the scheme. All the elements of income under the employment contract are fully liable to income tax and should be taxed via the PAYE / PRSI system as normal. Called the scheme for grant of ex-gratia payment of the difference between compound interest and simple interest for six months to borrowers in … 1. 5. What will be the treatment of penal interest/ penalties while arriving at the rate of interest? 2 Cr. What is the ex gratia payment to the borrower under the scheme announced by GoI? In this blog, we will know about the scheme for the grant of Ex-Gratia payment in detail. Is Interest payable when incorrectly levied penalties are repaid? The loan will entail only simple interest. The ex- gratia amount will be credited in the account of eligible borrowers without their requirement to apply for it. 2. From a borrower’s perspective, the benefit would be relatively higher for those who had availed of higher-yielding loans. In respect of Cash Credit/ Overdraft, the rate of interest for the purpose of calculating the differential shall be the rate of interest prevailing as on 29.02.2020. With regard to Credit card dues, how would the outstanding amount be determined? Both the borrowers, who have taken (partially or fully) and not taken moratorium facilities. Banks and financial institutions in the country have started refunding eligible borrowers for compound interest charged during the loan moratorium period. … The lending institutions have been asked to complete the exercise of crediting the amount in the accounts of borrowers by November 5. Automobile loans including two-wheeler loans are eligible under the scheme. BP.BC.47/21.04.048/2019-20 dated 27.03.2020 and extended on 23.05.2020. Such payments include compensation due or Ex-gratia payment made voluntarily by an employer is not taxable as ‘profits in lieu of salary _____ 24 December 2015 Background Section 17(3) of the Income-tax Act, 1961 (the Act) brings certain payments such as profits in lieu of salary within the ambit of ‘income from salaries’. The period reckoned for refund shall be from March 1 to August 21, 2020, that is six months period or 184 days, it said. To provide hassle free and convenient services HDB introduces Missed … Bad borrowers, whose loan has been considered as non-performing assets or they have delinquent on their EMI payments before February 29, 2020. The period reckoned for refund shall be from March 1 to August 21, 2020, that is six months period or 184 days, it said. No. The ex gratia relief will be credited to the account of all eligible borrowers without any requirement to apply. 1) The scheme mandates ex-gratia payment by way of crediting the difference between compound interest and simple interest for the the period of six months — 1 March, 2020- … Date 3rd November 2020. The ex-gratia payment of 'interest on interest' will be applicable for six months and only for selective specified loans, sources added. Lending institutions are to assess this on the basis of information available with them as well as information accessible from credit bureaus. 7. An ex gratia payment is made to an individual by an organization, government, or insurer for damages or claims, but it does not require the admittance of liability by the party making the payment. The government clarified that borrowers will be entitled to get a refund on an aggregate sum of Rs 2 crore borrowed from the banking system, No. For example, if you have a Consumer Durable Loan with principal outstanding of Rs 10,000/- as on March 1, 2020, additional interest of Rs 455/- will be added to your outstanding at the end of the moratorium. 1. Under this scheme, the banks and the NBFCs have started crediting the differential amount between the compound interest and the simple interest in the loan or bank accounts of the borrowers that have been generated during the moratorium period. How will the lending institution assess whether a borrower has aggregate loan facilities upto Rs.2.00 cr from the banking system? Apply Online for HDFC … Read everything about this scheme here. Here's why 2 ... 2020 to avail the ex-gratia payment. Credit card dues outstanding as on 29.2.2020 would be considered for giving relief to the borrowers and the benchmark rate applicable for such relief would be the contract rate (WALR), as on 29.2.2020, which is used by the credit card issuers for the purpose of EMI loans. Yes. 3. At the start of this month, some credit card providers surprised their customers as they credited the government’s ex-gratia … With regard to individual loans sold by one lending institution to another would be eligible under the Scheme? The period reckoned for refund shall be from March 1 to August 21, 2020 that is six months period or 184 days, it said. According to an estimate, the ex-gratia payment of interest-on-interest by banks and non-banking finance companies for the moratorium period would cost … COVID 19 Ex Gratia to borrowers for difference in interest. All eligible borrowers without any requirement to apply, it said individual banks/ lending institutions are to this! 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