Finance Ministry introduces loan waiver scheme

The Finance Ministry has announced waiver on interest for loans up to Rs 2 crore. The department of Financial services came out with operational guidelines in retaliation of the Supreme Court's direction to implement the interest waiver scheme and this the relief to the borrowers at the onset of the festive season.

As per the scheme, the lending institutions shall credit the difference between compound interest and simple interest to borrowers' respective accounts for a limited period of time.

"Borrowers who have loan accounts having sanctioned limits and outstanding amount of not exceeding Rs 2 crore (aggregate of all facilities with lending institutions) as on February 29 shall be eligible for the scheme," said finance ministry.

Housing loans, education loans, credit card dues, auto loans, MSME loans, consumer durable loans, and consumer loans are covered under the scheme.