Supreme Court pronounced verdict on Loan moratorium, declined extension
New Delhi: On Tuesday, Supreme Court pronounced the verdict on the loan moratorium case, the court decided to decline the six months extension of the loan moratorium. SC further mentioned the complete wave off on interest is not possible, this can affect the depositors.
However, it also mentioned that any amount which will be collected as compound interest shall be adjusted in the next installment payable instead of refunding to the borrower irrespective of the loan amount. The Court pronounced this decision on a batch of pleas by various trade associations.
Commenting on the same, it was also mentioned, “If the banks were to bear this burden, then it would necessarily wipe out a substantial and a major part of their net worth, rendering most of the lenders unviable and raising a very serious question mark over their very survival”
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