Under this scheme, the bank/ lending institution will provide ex gratia payment, which is the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding up to INR 2 crores (aggregate of all the borrowings / facilities from all the banks and financial Institutions) for the period from March 01, 2020 to August 31, 2020 (6 months / 184 days).
 

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

1. Loan accounts/Credit Card with sanctioned limits and outstanding amount not exceeding INR 2 crores (aggregate of all facilities with all the lending institutions) as on February 29, 2020 are eligible.
2. Loan accounts/Credit Card should be standard in the books of the lending institutions as on February 29, 2020.
3. Borrowers in the following segments/classes of loans will be eligible under this scheme –
   1. 1. MSME Loans
      2. Education loans
      3. Housing Loans
      4. Consumer Durable Loans
      5. Credit Card Dues
      6. Automobile loans
      7. Personal loans to professionals
      8. Consumption loans
4. The period reckoned for refund will be from March 01, 2020 to August 31, 2020, i.e. 6 months period / 184 days.

No, you do not have to apply, relief will be given to all eligible borrowers by the bank.

Individual banks/ lending institutions will finalize the list of eligible borrowers for the relief based on the GOI guidelines. These will be subject to independent audit. The bank reserves the right to recall the funds credited to the clients account.

Lending institutions are to assess this based on information available with them as well as information accessible from credit bureaus.

No. Non-Fund based limits will not be included for arriving at the eligibility.

Yes, the accounts classified as SMA-0, SMA-1 and SMA-2 as on February 29, 2020 are eligible for the relief package.

No. The loan/Credit Card balance should not be a Non-Performing Asset (“NPA”) as on February 29, 2020.

Yes. This scheme is applicable to all eligible borrowers irrespective of whether they have fully, partially availed or not availed the moratorium on repayment announced by RBI vide DOR. No. BP.BC.47/21.04.048/2019-20 dated March 27, 2020 and May 23, 2020.

Yes, partly disbursed loans will be eligible provided that the sanctioned and outstanding amounts do not exceed INR 2 Cr. The outstanding as on February 29, 2020 will be the reference amount for calculating the differential interest amount. Loan Amount disbursed till February 20 will be considered for the calculation of ex-gratia payment.

Yes, eligible borrowers under the scheme who have closed their account/s between March 01, 2020 and August 31, 2020 are also eligible for ex gratia payment from March 01, 2020 up to the date of account closure (not later than August 31, 2020).

The differential amount will be credited to the respective loan account(s)/ Credit Card/savings account of the eligible borrowers.

In case you have closed your loan account/ Credit Card after March 01, 2020, the ex-gratia payment will be credited to your savings/ current account. In case you do not maintain any such account with the bank you can contact us with the details of the account in other banks where the amount can be credited /remitted to.

The following Rate of Interest will be considered for each of the following loan categories:

1. 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 will be the contracted rate as specified in loan agreements/ documentation applicable as on February 29, 2020.
2. Consumer durable loans: The rate of interest to be applied for calculating the differential interest component will 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.
3. MSME:
   • 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 February 29, 2020.
   • Cash Credit/ Overdraft: The rate of interest for the purpose of calculating the differential will be the rate of interest prevailing as on February 29, 2020.
4. Credit Cards:
   • Eligibility: The Credit Card outstanding (i.e. settled amount) in the account as on February 29, 2020 will be the reference amount. Any debits / credits which are not reflected in the account will not be eligible/ will be excluded.
   • ROI (%): The rate of interest will be the Weighted Average Lending Rate (WALR) charged by the card issuers for transactions financed on EMI basis from its customers as on February 29, 2020.
      

No. Ex-gratia will not be paid on those credit cards where balance is in “credit” as on February 29, 2020.

The contracted rate / interest rate prevailing as on February 29, 2020 which is considered for calculating the interest differential will exclude any penalties or any penal rate of interest applied in the account.

The outstanding as on February 29, 2020 will be the reference amount for calculating the differential. Any repayment / credits subsequent from March 01, 2020 – August 31, 2020 will be ignored for the purpose of calculation.

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 February 29, 2020. Compounding of interest will be at monthly rests.

Please click here to refer our Grievance redressal matrix. You may also click here to register your grievance on our website.

Yes, loans for consumption purposes (e.g., social ceremonies, etc.) are also eligible for coverage under the scheme, besides other specified categories of loans like consumer durables, automobiles, education, credit card dues, housing and personal loans to professionals. However, loans against fixed deposits [including Foreign Currency Non-Resident (Bank) {(FCNR(B)} account, bonds and other interest-bearing instruments], and shares etc., and loans given for investment in financial assets (shares, debentures etc.) are not eligible for coverage under the scheme.

Credit Card dues outstanding as on February 29, 2020 would be considered for giving relief to the borrowers and the benchmark rate applicable for such relief would be the contract rate (Weighted Average Lending Rate - WALR) as on February 29, 2020, which is used by the credit card issuers for the purpose of EMI loans.

Settled amount in case of credit card dues is the amount outstanding against the actual transactions.

For illustrations: Authorization amount locked at the time of hotel check-in (which is released at the time of check-out) would not be considered as part of the settled amount for calculation of credit card dues.

Crop loans and tractor loans etc. are agriculture and allied activities loans and are not part of the eight segments/class of loans eligible under the scheme.

Automobile loans including two-wheeler loans are eligible under the scheme.

Yes, all eligible accounts foreclosed during the period of March 01, 2020 to August 31, 2020 are covered under the scheme.

The Bank will credit the amount of differential interest to your respective loan accounts(s)/ Credit Card by November 05, 2020.

The Bank will notify you on the credit of differential amount vide. SMS and/or e-mail on your registered mobile number and/or email id. The bank reserves the right to recall the funds credited to the clients account.

Yes, Loan accounts having sanctioned limits and outstanding amount not exceeding INR 2 crore [aggregate of all facilities with lending institutions] as on February 29, 2020 will be eligible under the scheme.

In case you have not received the credit of differential amount in your account it could be due to any of the following reasons:

• Loan/Facility/Card is closed prior to February 29, 2020
• Aggregate of all facilities with all the lending institutions exceeds INR 2 crore
• Customer’s one or more loans with RBL Bank are NPA
• Balance outstanding on February 29 is zero or in credit balance
• You have closed your account in the month of March 2020, and thus the difference between Simple and Compound interest is 0
• You loan account is closed and we do not have details of your savings account to credit the ex-gratia (in such case you can reach out to our customer service). In case the above do not apply to you, please log your issue with us. Please refer our Grievance redressal matrix specified in response to question no. 19.

No, only the eligible customers will be notified by the bank.