Union Cabinet approves ex-gratia payment

Guwahati: The Union Cabinet on Wednesday approved the payment of Rs. 973.74 crore in ex-gratia to Lending Institutions (LIs) for remaining claims under the Scheme for issuance of ex-gratia payment of the difference between compound and simple interest for six months to borrowers in specified loan accounts.

According to the official statement, providing distressed borrowers with an ex-gratia payment of the difference between compound and simple interest during the six-month moratorium period will help them cope with the stress caused by the pandemic and get back on their feet.

In the context of the COVID-19 pandemic, “Scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts (1.3.2020 to 31.8.2020)” was approved by the Cabinet in October, 2020, envisaging therein an outlay of Rs. 5,500 crore. Following category of borrowers were eligible for ex-gratia payment under the scheme:

  1. MSME loans up to Rs. 2 crore
  2. Education loans up to Rs. 2 crore
  3. Housing loans up to Rs. 2 crore
  4. Consumer durable loans up to Rs. 2 crore
  5. Credit card dues up to Rs. 2 crore
  6. Auto loans up to Rs. 2 crore
  7. Personal loans to professionals up to Rs. 2 crore
  8. Consumption loans up to Rs. 2 crore

The estimated amount of Rs. 5,500 crore was arrived at by extrapolating the share of SBI and Scheduled Commercial Banks for the aforementioned category of loans. It was also apprised to the Cabinet that the actual amount would be known once individual lending institutions submit their pre-audited account-wise claims.

Now, SBI has informed that it has received consolidated claims of Rs. 6,473.74 crore approx. from lending institutions. As Rs. 5,500 crore has already been disbursed to SBI, approval of the Cabinet is now being sought for balance amount of Rs. 973.74 crore.

 

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