India, Oct. 19 -- The government plans to waive compound interest on equated monthly instalments (EMIs) of loans valued at up to Rs. 2 crore, extending the benefit to all types of loans, including home mortages, and to borrowers who paid their EMIs during the duration of the moratorium, two officials aware of the plan said.

The plan to waive interest on interest during the moratorium between March 1 and August 31 is a work in progress and a formal announcement is expected before Diwali, the officials said, requesting anonymity.

"There should not be any sector-specific discrimination. It is not prudent to exempt interest on interest for personal loans only and deny the same for home loans. It will be extended to all those who have taken ...