Q: 1. What is the ex gratia payment to the borrower under the scheme announced by the Govt of India?

The bank/ lending institution will provide ex gratia payment to the borrower account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding upto Rs. 2 crores (aggregate of all the borrowings / facilities from all the banks and financial Institutions) for the period from 1st March 2020 to 31st August 2020 (6 months / 184 days).

Q: 3. Do I have to apply for the relief?

No. The ex gratia relief will be credited to the loan account of all eligible borrowers without any requirement to apply.

Question 1

1.	What is the ex gratia payment to the borrower under the scheme announced by the Govt of India?

Accepted Answer

The bank/ lending institution will provide ex gratia payment to the borrower account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding upto Rs. 2 crores (aggregate of all the borrowings / facilities from all the banks and financial Institutions) for the period from 1st March 2020 to 31st August 2020 (6 months / 184 days).

Question 2

2.	What are the main features of the ex gratia to borrowers scheme?

Accepted Answer

The main features / highlights of the scheme are as under:

a) Loan accounts with sanctioned limits and outstanding not exceeding Rs.2 crores (aggregate of all facilities with all the lending institutions) as on 29.02.2020.

b) Loan accounts should be standard in the books of the lending institutions as on 29.02.2020.

c) 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.

d) The period reckoned for refund shall be from 1st March 2020 to 31st August 2020, i.e. 6 months period / 184 days.

Question 3

3.	Do I have to apply for the relief?

Accepted Answer

No. The ex gratia relief will be credited to the loan account of all eligible borrowers without any requirement to apply.

Question 4

4.	Are NPA accounts eligible for the relief package?

Accepted Answer

No. The loan should not be a “Non Performing Asset (NPA) as on 29.02.2020.

Question 5

5.	Whether borrowers who have opted for deferment of Interest and Instalment under the RBI COVID 19 relief package earlier are eligible to avail the benefit under the above relief?

Accepted Answer

Yes. The package will be available for eligible borrowers irrespective of whether they have availed or partially availed or not availed the moratorium on repayment announced by RBI vide DOR. No. BP.BC.47/21.04.048/2019-20 dated 27.03.2020 and extended on 23.05.2020.

Question 6

6.	Whether “partly disbursed loans” are covered under the relief package?

Accepted Answer

Yes, provided that the sanctioned and outstanding amounts do not exceed Rs. 2 Cr.The outstanding as on 29.02.2020 shall be the reference amount for calculating the differential interest amount.

Question 7

7.	In which of my accounts will the differential amount be credited?

Accepted Answer

The differential amount will be credited to the respective loan account(s).

Question 8

8.	How will the credited amount be adjusted / treated?

Accepted Answer

The amount would be adjusted against the Loan dues. However, the same shall be subject to our claim being approved as per the Govt. Scheme.

Question 9

9.	Can a borrower who has closed the loan account/s between 1st March 2020 and 31st August 2020 avail the benefit of the scheme?

Accepted Answer

Yes. Such borrowers are eligible for refund of differential interest from 1st March 2020 upto the date of closure of account (not later than 31st August 2020).

Question 10

10.	If I have already closed my loan account after March 1st 2020, how will the differential amount be paid to me?

Accepted Answer

It will be credited to your savings/ current account. This credit is subject to our claim being approved as per the Govt scheme.

Question 11

11.	Which Rate of Interest (%) shall be considered for calculating the package, i.e. RoI (%) considered at the time of sanction or RoI (%) as on 29.02.2020?

Accepted Answer

a) In respect of Education loans, Housing loans, Automobile loans, Personal loans to professionals and Consumption loans, the rate of interest to be applied for calculating the differential interest component shall be the contracted rate as specified in loan agreements/ documentation applicable as on 29th February 2020.

b) In respect of consumer durable loans, the rate of interest to be applied for calculating the differential interest component shall be the contracted rate as specified in loan agreements/ documentation. In case where no interest is being charged on equated monthly instalments for a specified period, for the purpose of relief, interest may be applied at MCLR/ Base rate as the case may be.

c) MSME:

· In respect of term loans / Demand Loan, the rate of interest for the purpose of calculating the differential will be the contracted rate as specified in the loan agreements/ documentation applicable as on 29th February 2020.

· In respect of Cash Credit/ Overdraft, the rate of interest for the purpose of calculating the differential shall be the rate of interest prevailing as on 29.02.2020.

Question 12

12.	What will be the treatment of penal interest/ penalties while arriving at the rate of interest?

Accepted Answer

The contracted rate / interest rate prevailing as on 29.02.2020 which is considered for calculating the interest differential will exclude any penalties or any penal rate of interest applied in the account.

Question 13

13.	What will be the treatment for the repayments / credits made in term loan/ demand loan during the period from 1st March 2020 to 31st August 2020?

Accepted Answer

The outstanding as on 29.02.2020 will be the reference amount for calculating the differential. Any repayment / credits subsequent from 01.03.2020 – 31.08.2020 shall be ignored for the purpose of calculation.

Question 14

14.	How will the interest be calculated for cash credit/ overdraft accounts?

Accepted Answer

Simple interest for the period will be calculated based on daily outstanding as at end of the day at rate of interest prevailing as on 29.02.2020. Compounding of interest shall be at monthly rests.

Question 15

15.	How can I flag my grievances related to the relief package?

Accepted Answer

The borrowers are requested to log in to their loan account on our website to register their grievance or visit our branch and submit his / her grievance.

COVID-19 EX GRATIA SCHEME

Tata Capital Financial Services & Tata Capital Housing Finance - FAQs

Tata Capital Financial Services & Tata Capital Housing Finance - FAQs

1. What is the ex gratia payment to the borrower under the scheme announced by the Govt of India?

2. What are the main features of the ex gratia to borrowers scheme?

3. Do I have to apply for the relief?

4. Are NPA accounts eligible for the relief package?

5. Whether borrowers who have opted for deferment of Interest and Instalment under the RBI COVID 19 relief package earlier are eligible to avail the benefit under the above relief?

6. Whether “partly disbursed loans” are covered under the relief package?

7. In which of my accounts will the differential amount be credited?

8. How will the credited amount be adjusted / treated?

9. Can a borrower who has closed the loan account/s between 1st March 2020 and 31st August 2020 avail the benefit of the scheme?

10. If I have already closed my loan account after March 1st 2020, how will the differential amount be paid to me?

11. Which Rate of Interest (%) shall be considered for calculating the package, i.e. RoI (%) considered at the time of sanction or RoI (%) as on 29.02.2020?

12. What will be the treatment of penal interest/ penalties while arriving at the rate of interest?

13. What will be the treatment for the repayments / credits made in term loan/ demand loan during the period from 1st March 2020 to 31st August 2020?

14. How will the interest be calculated for cash credit/ overdraft accounts?

15. How can I flag my grievances related to the relief package?

Stay Safe - Secure yourself digitally by following these guidelines: