New Delhi, Oct 25 (TIWN) After announcing a host of demand generating initiatives earlier this month, the government has now approved a new scheme for ex gratia payment to borrowers that will reimburse differential between compound and simple interests for the Six-month loan moratorium period.

This means all borrowers who took advantage of loan moratorium extended by the government between March 1 and August 31 will pay only simple interest on repayments not made during the moratorium period. Excess amount charged due to compounding of interest would be returned as ex gratia payment.