Loan Moratorium Extendable Up To Two Years, Centre Informs SC

by Rahul Gautam Sep 01, 2020 • 05:51 PM Views 1007

There was a six-month moratorium from loan repayment during the coronavirus lockdown which can now be extended by up to two years as per RBI circular, the Central Government on Tuesday informed SC. However, it is not clear whether the relief will be given to all or some sectors hit by the Coronavirus pandemic. Petitioner Gajendra Sharma has said that banks have given exemption in paying the loan installment but during this time started charging interest on the interest. Gajendra Sharma said that doing so did not bring any relief to those who did not pay the loan installment. The Supreme Court is now hearing the matter whether it is permissible to charge interest on the interest of banks or there is another option.