Govt's ex-gratia payment of interest on interest to cover 75% borrowers

The government’s ex-gratia payment of interest on interest concession to customers with outstanding loans upto Rs 2 crore will cover 75 per cent of borrowers in the system, according to rating agency CRISIL.

From a borrower’s perspective, the benefit would be relatively higher for those who had availed of higher-yielding loans. Consequently, borrowers of unsecured, micro and gold loans will benefit more than those who had taken home loans, CRISIL said.

The tab that the government will pick-up for such concession is estimated at about Rs 7,500 crore, according to CRISIL’s analysis.

The government is giving this benefit to