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).
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
This is the compound interest between Mar - Aug, 2020
This is the simple interest between Mar - Aug, 2020
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.
Here are a few steps you need to follow to use the interest on interest waiver calculator correctly.
Here are the basic criteria to qualify for the waiver under this scheme
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.