Login With Google
Payback scheme on interest
Why is it in news?
- Industry and business sectors complained to the Supreme Court that the government’s decision to restrict its payback scheme to “small” borrowers was “arbitrary.”
- The scheme covers only eight categories of loans, worth up to ₹2 crore.
- The Business sectors classified as ‘big’ borrowers urge loan relief in plea to apex court.
More about Payback scheme:
- The borrowers who did not opt for a moratorium on loans during the lockdown would get an ex gratia payment or a cashback.
- The payment would be made to small business entities and individual borrowers with loans up to Rs 2 crore.
- So far, the payback scheme covers only MSME, education, housing, consumer durables, credit card, auto, personal and consumption loans.
- Lenders have already returned over ₹4,300 crore as the difference in the compound interest and simple interest charged during moratorium period.
- However, industrial and business sectors, classified as “big” borrowers, have been seeking industry-specific relief.