A government-appointed committee has given its recommendations on the impact of waiving interest and interest on interest on the national economy.
The government has told the Supreme Court
it has decided to waive "interest on interest" on loans of up to Rs 2 crore during the six-month moratorium period, the Times of India reported on Saturday.
The government's decision will benefit those clearing their dues on a variety of loans between March and August. "This category of borrowers, in whose case the compound interest will be waived, would be MSME loans and personal loans up to Rs 2 crore of the following category—MSME loans, education loans, housing loans, consumer durable loans, credit card dues, auto loans, personal loans to professionals and consumptions loans,” said the finance
ministry in an affidavit before the Supreme Court
on Friday, according to Times of India.