Prospects for a time extension for loan repayment!
Posted on: 02/Sep/2020 11:56:04 AM
The Central Government has informed in the Supreme Court that it is possible to extend the already once-extended time limit for the repayment (EMI – Equated Monthly Installments) of loans by another 2 YEARS.
Petitions have been filed in the Supreme Court regarding the cancellation of the interest and the interest accrued on the outstanding interest for the extended time limit for the loans taken especially in the prevailing raging coronavirus pandemic and the affected lifeline of the citizens throughout the country.
The Government Solicitor General Tushar Mehta filed the reply petition of the central government in the Supreme Court. During this period, the solicitor general informed that the time limit for the repayment od the loans can be extended further up to 2 years!
The Solicitor General further explained that the central government is reviewing the details regarding the sectors affected severely by the prevailing coronavirus pandemic to decide the optimum extension of the time extension for these sectors.
The Supreme Court has already emphasised the central government and the Reserve Bank of India the need for a decision on cancellation of the interest. The Supreme Court had also questioned the system of charging interest for the interest!
The judges have informed that they will release the verdict on the issue of the interest and the issue of the interest on interest today (Tuesday 2nd September).
The earlier extension of the time limit (6 months) granted in the prevailing coronavirus pandemic crisis has expired on 31st August!
