Fullerton India Credit Co. Ltd. is Now SMFG India Credit Co. Ltd.

Ex-Gratia Payment of Compound Interest Waiver

In light of the COVID-19 pandemic, the RBI had announced a 6 month moratorium for all eligible borrowers from Mar – Aug, 2020. However, due to the COVID-19 pandemic wherein millions of people have struggled with loss / reduction of income (and may continue to do so), the RBI has recently announced the “Scheme for ex-gratia payment of difference between compound interest and simple interest for 6 months to borrowers with specific loan accounts”. This scheme was announced after the verdict passed by the Supreme Court on the same issue.

Simply explained, this scheme allows certain eligible borrowers to receive the difference between the compound interest charged between Mar –Aug, 2020 (6 months) and the simple interest for the same period in the form of a credit to their outstanding loan (if the loan is ongoing) or bank account (in case the loan is already closed).

Ex-gratia Payment Calculator

You can use the Interest on Interest Waiver calculator below to estimate the waiver amount you may be eligible for as a result of this scheme


Compound Interest charged between Mar - Aug, 2020


This is the compound interest between Mar - Aug, 2020

Simple Interest levied between Mar - Aug 2020


This is the simple interest between Mar - Aug, 2020

Ex-Gratia compound interest waiver to be offered


This is the ex-gratia amount that you will receive as a result of the waiver.

Disclaimer: The ex-gratia amount will be credited to your principal outstanding (in case your loan is still ongoing), or to your bank account (in case of closed accounts). For more details, please contact your nearest SMFG India Credit branch.

How to use the Ex-gratia Payment Calculator?

Here are a few steps you need to follow to use the interest on interest waiver calculator correctly.

  1. Is your loan still ongoing or has it been closed? Select “Yes” or “No” accordingly.
  2. If your loan is closed, please enter the date when you had paid the last instalment. To know the exact date, please refer to your loan statement / loan closure document or use our customer login section.
  3. Enter the principal amount outstanding as on Feb 29, 2020. To know this value, please refer to any loan statement dated post Mar 01, 2020 or use the customer login section to check the schedule.
  4. Enter the interest rate of your loan.
  5. You will be shown the following details:
    1. Compound interest charged between Mar – Aug, 2020
    2. Simple interest applicable between Mar – Aug, 2020
    3. Difference between compound and simple interest, which is the total ex-gratia payment you may be given as a result of this scheme.

Who is Eligible for the Ex-gratia Payment Scheme?

Here are the basic criteria to qualify for the waiver under this scheme

  1. The account should be classified as “Standard” as on Feb 29, 2020. This means that loan accounts which have been declared as non-performing assets (NPA) on or before this date will not be eligible.
  2. The outstanding loan amount should not exceed INR 2 crores
  3. At SMFG India Credit, we are extending this scheme for the following products as per the regulatory guidelines:
    1. Personal Loans (provided to professionals like lawyers, chartered accounts, etc. only)
    2. Home Loans
    3. Two Wheeler Loans
    4. Commercial Vehicle Loans
    5. Loan Against Property (for both salaried / self-employed)
    6. MSME Loans (includes secured and unsecured business loans)

All borrowers who satisfy the above criteria are eligible for this scheme, irrespective of whether they have / have not / have partially availed the 6-month moratorium facility between Mar – Aug, 2020.