Instructions not to impose subsidy interest on the customer

To offset the losses caused by the corona epidemic, the government will subsidize half of the interest on loans announced in the incentive package for entrepreneurs. However, some banks are imposing subsidy interest on customers. It is time to pay the full amount including interest. In this situation, the central bank has instructed to keep the subsidy interest separately. The directive was given in a notification issued on Tuesday.

The government announced various loan packages at subsidized interest due to coronavirus. The largest of these packages is for the affected industries and services. In the meantime, the credit limit of this package has been increased from Rs 30,000 to Rs 40,000 crore. The government will subsidize the loan of the incentive package distributed at 9 percent interest at 4 percent. Customers are required to pay 4 and a half percent interest.

Sunbd/NJ