Crop, tractor loans not part of interest-on-interest waiver scheme, Centre clarifies

TIL Desk/Business/New Delhi/ Agriculture and allied activity loans are not eligible for the interest on interest waiver announced by the government last week, the finance ministry has clarified. Issuing additional frequently asked questions (FAQs) on the ‘scheme for grant of ex-gratia payment of the difference between compound interest and simple interest’, it said credit card dues outstanding as on February 29 would be considered for giving relief to the borrowers.

The benchmark rate applicable for such relief would be the contract rate, which is used by the credit card issuers for the purpose of EMI loans, it added. Crop and tractor loans come under agriculture and allied activities loans and are not part of the eight segments or classes eligible under the scheme, it added.

The relief shall cover the following segments — MSME loans, education loans, housing loans, consumer durable loans, credit card dues, automobile loans, personal loans to professionals and consumption loans, according to the FAQs released by the ministry earlier on Wednesday.