{"id":86617,"date":"2020-10-28T17:30:45","date_gmt":"2020-10-28T12:00:45","guid":{"rendered":"https:\/\/factly.forumias.com\/?p=18185"},"modified":"2021-06-22T15:04:12","modified_gmt":"2021-06-22T09:34:12","slug":"compound-conundrum-on-interest-waiver","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/compound-conundrum-on-interest-waiver\/","title":{"rendered":"Compound conundrum: On interest waiver"},"content":{"rendered":"\r\n<p><strong>News:<\/strong> Government of India has announced a scheme called, &#8216;Scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts\u2019.<\/p>\r\n\r\n\r\n\r\n<p><strong>Facts:<\/strong><\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li><strong>Aim: <\/strong>To provide major relief for individuals and MSME borrowers by waiver of the compound interest on specified loans for six months period.<\/li>\r\n<li><strong>What does it mean?<\/strong> In simple words, the borrowers need to pay simple interest on their loan amount for the six month period between March and August as against the compound interest.<\/li>\r\n<li><strong>Categories: <\/strong>The loans eligible under the scheme include MSME loans, education loans, housing loans, consumer durable loans, credit card dues, automobile loans, personal loans to professionals and consumption loans.<\/li>\r\n<li><strong>Eligibility: <\/strong>Any borrower whose aggregate of all facilities with lending institutions is more than \u20b92 crore (sanctioned limits or outstanding amount) will not be eligible for ex-gratia payment under this scheme. Also, the loan accounts should not be non-performing assets(NPA) as on the date mentioned above.<\/li>\r\n<li><strong>Lending Institutions: <\/strong>The lending institution has to be either a banking company, or a public sector bank, co-operative bank or a regional rural bank, or All India Financial Institution, a non-banking financial institution, housing finance company or a micro finance institution.<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p><strong>Additional Facts:<\/strong><\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li><strong>Simple and Compound Interest:<\/strong> Simple interest is calculated on the principal, or original, amount of a loan.On the other hand, Compound interest is calculated on the principal amount and also on the accumulated interest of previous periods and can thus be regarded as &#8220;interest on interest\u201d.<\/li>\r\n<\/ul>\r\n","protected":false},"excerpt":{"rendered":"<p>News: Government of India has announced a scheme called, &#8216;Scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts\u2019. Facts: Aim: To provide major relief for individuals and MSME borrowers by waiver of the compound interest on specified loans for six months&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/compound-conundrum-on-interest-waiver\/\">Continue reading <span class=\"screen-reader-text\">Compound conundrum: On interest waiver<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3127],"tags":[4180],"class_list":["post-86617","post","type-post","status-publish","format-standard","hentry","category-economy","tag-scheme-on-interest-waiver-for-msme","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704743346},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/86617","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=86617"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/86617\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=86617"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=86617"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=86617"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}