An ex gratia payment is made to an individual by an organization, government, or insurer for damages or claims, but it does not require the admittance of liability by the party making the payment. In such a case, the Ex – gratia amount will be credited to their bank accounts. Consumer sturdy loans: The rate of interest to be utilized for calculating the distinction between easy and compound interest shall be the contracted rate as laid out in mortgage settlement/ documentation.. I have closed my loan account with DBS Bank. How and where will my ex-gratia payment amount be credited? If you feel that your ex-gratia payment amount has been incorrectly calculated, then kindly re-check your calculation in line with the above illustration. Such payment does not constitute a contractual, legal or equitable liability of the Central Government and is only an ex-gratia payment for a designated class of borrowers in view of the COVID-19 pandemic. Period to be reckoned for computing ex-gratia payment set as March 1, 2020 - Aug. 31, 2020. How will the ex-gratia payment be calculated? My ex-gratia payment amount has been incorrectly calculated. your aggregate loan amount with all lending institutions exceeding the limits as mentioned in the notification; or, the outstanding status of your loan as on 29 February 2020 is not standard or is a NPA (non-performing asset); or, if you have a new/any loan account which is not eligible as per the scheme. How do I inform my bank? If you do not have any accounts open with the bank at the time of receiving the ex-gratia payment, then we will reach out to you on your last registered email id available with us, to obtain your other bank details. Please note that it will take 7 working days to credit the ex-gratia payment amount, from the date of receipt of your other bank details and authorization instructions to credit the amount there. The ex-gratia payment under this scheme shall be applicable irrespective of whether the borrower had fully availed or partially availed or not availed the moratorium on repayment announced by RBI vide its circular DOR.NO. The ex gratia amount will be calculated as the difference between simple interest and compound interest for the outstanding credit during the Moratorium relief period i.e. Disclaimer: The ex-gratia amount will be credited to your principal outstanding (in case your loan is still ongoing), or to your bank account (in case of closed accounts). People who took a bank loan up to Rs 2 crore will benefit from this ex-gratia from banks. The ex-gratia payment under this scheme shall be applicable irrespective of whether the borrower had fully availed or partially availed or not availed the moratorium on repayment announced by RBI vide its circular DOR.NO. Ex gratia credit on home loans, credit card statements etc at Others. Excel provides a simple formula for this purpose: PMT (rate, nper, pv, [fv], [type]). Scheme for Grant of Ex-gratia Payment. BP.BC.47/21.04.048/2019-20, dated 27.03.2020 and extended on 23.5.2020. The ex-gratia payment will be calculated basis the difference between compounding interest and simple interest for on your loan outstanding amount for 6 months or 184 days. Please note that it will take 7 working days to credit the ex-gratia payment amount, from the date of receipt of your other bank details and authorization instructions to credit the amount there. 2. This is the ex-gratia amount that you will receive as a result of the waiver. The ex-gratia payment will be calculated basis the difference between compounding interest and simple interest for on your loan outstanding amount for 6 months or 184 days. 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. The Ex-Gratia Payment Scheme is the payment of the difference between the Compound Interest and the Simple Interest for six months ending 31 August 2021 to borrowers in specified loan accounts. If you have also closed your Savings account, then we will reach out to you on your last registered email id available with us, to obtain your other bank details. From a borrower’s perspective, the benefit would be relatively higher for those who had availed of higher-yielding loans. All eligible borrowers irrespective of whether they had availed or partially availed or not availed the moratorium on EMI repayments announced by RBI vide DOR. No. No. BP.BC.47/21.04.048/2019-20 dated 27 March 2020 and extended on 23 May 2020. The ex-gratia payment will be adjusted towards the loan EMI and/or outstanding dues, if any, by 5th November 2020, as per the Government of India guidelines. -- Created at 05/11/2020, 26 Replies - Dost and Dimes -- India's Fastest growing Online Shopping Community to find Hottest deals, Coupon codes and Freebies. The ex-gratia payment will be applicable for -. For example: If your Principal outstanding loan balance as on 29 February 2020 is INR 50,00,000 and the contracted Rate of Interest is 7.50%, then the ex-gratia amount will be calculated as below: If you have not received the ex-gratia payment, it may be due to multiple reasons. I have closed my loan account with DBS Bank. What is the ex gratia payment to the borrower under the scheme announced by the Government of India (GOI)? The rate of interest used to calculate the ex gratia amount will be based on the contracted rate specified for most loans. All eligible borrowers irrespective of whether they had availed or partially availed or not availed the moratorium on EMI repayments announced by RBI vide DOR. For Home Loans, please reach out to your branch Relationship Manager / Service Manager. 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. The ex-gratia payment will be adjusted towards your loan account EMI and/or outstanding dues, if any. Should you still wish to raise a dispute on the digibank app, For existing Personal Loan accounts, go to the transaction history, select transaction not listed option and follow the steps to submit your request, For closed loan accounts, go to the transaction history for your Savings account, select the transaction and follow the steps to submit your request. Would the ex-gratia payment be credited into my Loan account or Savings account? The scheme mandates ex-gratia payment by way of crediting the difference between simple interest and compound interest. The Government will reimburse the banks for such relief provided to you. Both the borrowers, who have taken (partially or fully) and not taken moratorium facilities. Ex-Gratia Payment Scheme FAQs dated 26 October 2020, Ex-Gratia Payment Scheme FAQs dated 29 October 2020, Ex-Gratia Payment Scheme FAQs dated 3 November 2020. In view of the unprecedented and extreme COVID-19 situation, the object of the Scheme is to provide ex-gratia payment of difference between compound interest and simple interest by ways of relief for the period from 1st March 2020 to 31st August 2020 to borrowers in specified loan accounts. What happens to the amount if my loan and/or Savings account are already closed with the bank? BP.BC.47/21.04.048/2019-20, dated 27.03.2020 and extended on 23.5.2020. March 1, 2020 to Aug. 31, 2020. Relief = Compound Interest for 6 months – Simple interest for 6 months. For example on an outstanding loan of Rs 1 lakh (with an interest rate of 8%), the borrower will get an ex-gratia of about Rs 68. If you have also closed your Savings account, then we will reach out to you on your last registered email id available with us, to obtain your other bank details. Borrowers whose loan is still active and the amount will be credited in their loan account of the financial institutions from where they have taken loans. The government has rolled out an interest relief package – Ex-gratia Payment Scheme – for borrowers having sanctioned and outstanding loan limits not exceeding INR 2 Crores. 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). For more … People who have dues in credit cards are also entitled to claim this fund. The ex-gratia payment will be adjusted towards your loan account EMI and/or outstanding dues, if any. Such payment does not constitute a contractual, legal or equitable liability of the Central Government and is only an ex-gratia payment for a designated class of borrowers in view of the COVID-19 pandemic. If you feel that your ex-gratia payment amount has been incorrectly calculated, then kindly re-check your calculation in line with the above illustration. This relief will be credited to your loan account by November 5, 2020. If your loan account has been closed after 29th February and before 31st August, the payment will be calculated for the period applicable and credited to your savings account held with the bank. On 23rd October 2020 Ministry of Finance, Government of India issued direction to all lending institutions to implement Scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts (1.3.2020 to 31.8.2020). PMT stands for Payment – and gives periodic loan payment or EMI value as an output. The Banks/Lending institution will provide Ex-Gratia payment to the borrower account of the difference between compound interest and simple interest on loan accounts for the period from 01-03-2020 to 31-08-2020 (6 months/184 days). Ex Gratia Payment is a scheme announced by Government of India for the payment of the difference between compound interest and simple interest for six months to the borrowers on loan accounts with sanctioned limits and outstanding upto Rs. Ex-gratia benefit is computed as the difference between compound interest and simple interest, calculated on outstanding in the account as at the end of 29.02.2020, for the period to be reckoned and at the rate as specified under point 8 "Rate of Interest" of the scheme letter. Loan accounts with sanctioned limits and outstanding not exceeding INR 2 crores (aggregate of all facilities with all the lending institutions) as on 29 February 2020, subject to the loan accounts being standard (should not be a Non-performing Asset or NPA) in the books of the lending institutions as on 29 February 2020. How will the Ex-Gratia Interest Relief amount be calculated? How and where will my ex-gratia payment amount be credited? A lump sum loan calculator can show you how much money you can save when you make a lump sum payment for your student loans. Would the ex-gratia payment be credited into my Loan account or Savings account? # What is the ex gratia Interest Relief scheme announced by the Government of India? Nov 5, 2020, 11:20 AM IST On 23rd October 2020 Ministry of Finance, Government of India issued direction to all lending institutions to implement Scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts (1.3.2020 to 31.8.2020). What is the Scheme for grant of ex-gratia payment launched by the Government of India and who all are eligible for receiving this payment? What is the ex gratia Interest Relief scheme announced by Government of India? 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