FHRAI

INDIA

  • Home
  • FH&RA in the news
  • Scheme for grant of ex-gratia payment - Waiver of Compounding Interest - Interest on Interest

News Details

Scheme for grant of ex-gratia payment - Waiver of Compounding Interest - Interest on Interest

03 th Nov 2020

The Managing Directors/CEO's/Owners/Director/Partners/General Managers        
All FHRAI Members      

CC:      All Members of the Executive Committee
             All Regional Associations 

Subject: Scheme for grant of ex-gratia payment - Waiver of Compounding Interest - Interest on Interest

Dear Member,

As you may be aware, that the Department of Financial Services, Ministry of Finance has approved the Scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts (1.3.2020 to 31.8.2020). We are pleased to share the Salient Points of the Operational Guidelines. 

Salient Points: -

  • Only those borrowers who have loan accounts having sanctioned limits and outstanding amount of not exceeding Rs. 2 crores (aggregate of all facilities with lending institutions) as on 29.2.2020, shall be eligible under the Scheme.
  • The rate of interest would be as prevailing on 29.2.2020, i.e., in case the rate of interest has changed thereafter, it shall not be reckoned for the purposes of this computation.
  • The eligibility will only for the following segments/classes of loans:  MSME loans, Education loans, Housing loans, Consumer durable loans, Credit card dues, Automobile loans, Personal loans to professionals and Consumption loans
  • The period to be reckoned for crediting of difference between compound interest and simple interest by the lending institutions would be from 1.3.2020 to 31.8.2020 (six months / 184 days).
  • The payable ex-gratia amount shall have to be credited to the account of the borrower by the respective lending institutions as ex-gratia payment under the scheme on or before 5.11.2020.

Please click on the link to access the document containing detailed information.

Kind regards,

Gurbaxish Singh Kohli
Vice President
_____________________________________________________
The Federation of Hotel & Restaurant Associations of India
Regd. Off.: B-82, 8th Floor, Himalaya House, 23 K.G. Marg, New Delhi - 110 001
Tel.: 011-40780780, Email: fhrai@fhrai.com, Website: www.fhrai.com  

 

Attachments :

CONTACT US

THE FEDERATION OF HOTEL & RESTAURANT
ASSOCIATIONS OF INDIA

Address:

B-82, 8th Floor, Himalaya House, 23,
K. G. Marg, New Delhi-110 001

Telephone: 011-40780780

For any queries, please write to us on or contact us on

E-mail: fhrai@fhrai.com