In a bid to help borrowers during the outbreak of coronavirus, the government on Friday informed of implementing a loan relief scheme by November 5 and would reimburse the interest that was applicable to eligible loan repayments due between March and August.
In guidelines on the loan relief released on Wednesday, the Department of Financial Services said, "the relief will be available to the borrowers regardless of whether they opted to defer their EMIs, either fully or partially".
The order further stated lending institutions will first credit the amount – the difference between compound interest and simple interest for the six-month period – on eligible loans up to rupees 2 crore, which will be reimbursed by the government as part of the scheme.
According to a PTI report, the government will be spending 6,500 crore for the implementation of the scheme.