The Ministry of Finance has issued detailed guidelines for implementation of the interest waiver scheme ahead of the hearing in the matter in the apex court on November 2.
As per the operational guidelines issued by Department of Financial Services, the interest waiver scheme can be availed by borrowers in specified loan accounts for loans up to Rs 2 crore during the period from March 1 to August 31, 2020.
“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,” the circular said.
As per the eligibility criteria mentioned in the guidelines, the accounts should be standard as on February 29 which means that it should not be Non-Performing Asset (NPA).
According to circular, any borrower whose aggregate of all facilities with lending institutions is more than Rs. 2 crore (sanctioned limits or outstanding amount) will not be eligible for the waiver under this scheme.
Housing loan, education loans, credit card dues, auto loans, MSME loans, consumer durable loans and consumption loans are covered under the scheme.
The loan must be availed from a banking company, a Public Sector Bank, a Co-operative Bank, a Regional Rural Bank, an All India Financial Institution, a Non-Banking Financial Company or a Housing Finance Company. Loans from Micro Finance Institutions are also eligible, provided it is a are member of a Self-Regulatory Organisation (SRO) recognised by RBI.