09-04-2021 | 12:41 PM
Loan Moratorium Scheme
The Supreme Court of India has declined to participate in the government's and the Reserve Bank of India's (RBI) decision on the loan moratorium system, refusing to prolong the moratorium term of six months.
Key Highlights:
• The Supreme Court has also stated that additional reliefs such as absolute waiver of interest cannot be granted because they would damage depositors.
• The Supreme Court has stated that no interest on interest would be paid to creditors during the moratorium duration, regardless of loan size.
Note:
A loan moratorium is a period of time during which lenders are not expected to pay an EMI on a loan they have taken out. This is also an EMI holiday time. Such breaks are provided to assist people who are experiencing temporary financial challenges in properly planning their budgets.
