NEW DELHI, Oct. 30 -- Lenders will have to pay up by 5 November the interest on interest charged on loans of up to '2 crore for the six-month repayment moratorium period, the government said, 10 days after being pulled up by the Supreme Court.
The finance ministry announced the waiver on interest on interest on Saturday, 24 October, along with details of implementation.
To be sure, borrowers will still have to pay the simple interest on their loans.
The scheme for "grant of ex-gratia payment " is applicable for the sixmonth period of 1 March to 31 August. The money will be routed through lending institutions, the ministry said in a circular for banks and other lending institutions.
The lender has to credit the amount to the borrower's a...