In view of the unprecedented and extreme COVID-19 situation, Government of India (GOI) - Ministry of Finance on October 23, 2020 has approved “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)” (‘Scheme’). As per the Scheme benefits would be routed to customers through lending institutions.
The Government of India has announced the scheme to grant a payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts. The difference between simple interest and compound interest will be credited, for the period 1st Mar 2020 to 31st Aug 2020 by the respective lending institutions.
The period considered will start from 1st Mar 2020 and end on date of account closure (if the credit card or loan account is closed) or 31st Aug 2020, whichever is earlier.
Customers who have taken any of the below
Customers whose aggregate of all facilities with lending institutions (all credit cards / loan accounts across lending institutions ) is less than Rs 2 Crore, as on 29th Feb 2020 (sanctioned limits or outstanding amount) will be eligible for payment.
For accounts closed during the said period, the period of consideration for calculating the ex gratia payment amount would be from 1st March 2020 till date of closure of the account (not later than 31st August 2020).
No, the ex gratia relief will be credited to the account of all eligible borrowers without any requirement to apply.
The outstanding amount as on 29th Feb 2020 will be the reference amount for calculation of the difference between simple and compound interest for term loans. For Cash Credit / Overdraft facility, this will be calculated on the daily outstanding as at end of day. For interest rate applied, please refer to respective product FAQs given below.
The outstanding as on 29th Feb 2020 will be the reference amount for calculating the differential. Any repayment / credits subsequent between 1st Mar 2020 and 31st Aug 2020 shall not be considered for the purpose of calculation.
As per the Government of India (GOI) - Ministry of Finance guidelines, the lending institutions are directed to credit the payment by 5th Nov 2020.
You can raise your claim through any our customer service channels.
Please refer Contact Us page https://www.online.citibank.co.in/customerservice/home.htm?eOfferCode=INHOGNTHECONTU
Please note that in the event that the ex-gratia payment credited on your account is considered ineligible under the Scheme subsequently by Statutory Auditor, Nodal Cell or the Government, thereby rejecting Bank’s reimbursement claim of such ex-gratia payment, fully or partially, Bank reserves the right to reverse or recover such ex gratia payment.
No, Non fund based limits will not be included for arriving at the eligibility in line with the FAQ released on the Scheme.
No. The loan should not be a Non Performing Asset (NPA) as on 29th February 2020
Yes, the Bank will send a communication vide email or SMS to all borrowers once the credit is done.
Credit card account which were standard (as per the payment history reflecting in credit bureaus) as of 29th Feb 2020 will be eligible for ex-gratia payments.
Yes. The ex-gratia payment under the Scheme provisioned by the GOI will be admissible irrespective of the customers’ enrolment status during the moratorium period.
The ex-gratia payments will be provided for the unpaid balance as on 29th Feb, 2020 including, the principal balances of loans taken on card. All types of loan on card products (which are of financed nature) will be considered for calculation.
Yes. If you are eligible under the conditions of the Scheme, the ex-gratia payment will be made to each card.
For credit cards, the rate of interest will be a Weighted Average Lending Rate (WALR) of all the Loans on Cards as of 29th Feb 2020. WALR will be computed based on EMI loans financed on the credit card during the period 1st March 2020 to 31st August 2020.
The ex-gratia amount will be calculated on Card/Loan on card balance as on 29 Feb 2020 and difference of monthly compounded interest and simple interest using WLAR be credited to customer account.
Yes. The ex-gratia payment will be based on the balance outstanding as on 29th Feb 2020.
We will send you a communication through email or SMS with details after the ex-gratia payments are posted to your credit card account(s).
Your card outstanding will be evaluated by summation of unpaid balances inclusive of interest, taxes & charges and EMIs (if any).
Please note that in case the ex-gratia payment results in a credit balance in your card, the credit balance will be transferred within 1 week to any linked open Citi credit card. If you do not hold any linked open cards the amount will be transferred to your linked open Citibank account. In case you do not hold any linked open cards or account, a Demand Draft will be issued and dispatched to the mailing address as per our records.
Yes, the ex-gratia payment will clear minimum amount due.
No, GST will not be reversed.
Individual banks/ lending institutions will finalize the list of eligible borrower for the relief based on the Government of India scheme guidelines.
Loan accounts having sanctioned limits or outstanding amount of not exceeding Rs 2 crore [aggregate of all facilities with lending institutions] as on 29th February 2020 shall be eligible. Any borrower whose aggregate facilities with lending institutions is more than Rs 2 crore (sanctioned limits or outstanding amount) shall not be eligible for scheme.
Loan account should be standard as on 29th February 2020 i.e. loan should not be non-performing asset (NPA) in the books of bank/lending institution as on 29th February 2020.
Loan account should have principal outstanding as on 29th Feb 2020.
The rate of interest to be applied for calculating the differential interest component shall be the contracted rate on your personal loan as on 29th Feb 2020.
The payment will be credited/applied to your loan account. In case the loan account is closed, it will be credited to linked Citibank savings account or a demand draft will be issued to the mailing address as per our records.
Yes. The package will be available for eligible borrowers irrespective of whether they have availed or partially availed or not availed the moratorium on repayment announced by RBI vide DOR. No. BP.BC.47/21.04.048/2019-20 dated 27.03.2020 and extended on 23.05.2020.
The principal outstanding amount as on 29th Feb 2020 will be taken for calculation of the difference between simple and compound interest.
We will send you an alert with details after the ex-gratia payments are posted to your loan account(s).
Ready credit accounts which were standard as on 29th Feb 2020 will be eligible for ex-gratia payments.
The daily outstanding balance for the relief period- 1st March’2020 to 31st August 2020 will be considered, if the ready credit facility is not closed. The difference between compound interest and simple interest, calculated at the rate of interest applicable as on 29th Feb 2020, will be ex-gratia amount.
Yes. The ex-gratia payment under the scheme provisioned by the GOI will be admissible irrespective of the customers’ enrolment status during the moratorium period.
The rate of interest applicable on your account as on 29th Feb 2020 will be used for evaluation of the ex-gratia payment.
Yes. The ex-gratia payment will be paid to all customers which were standard as on 29th Feb 2020, irrespective of payment of dues after that.
The payment will be posted in your linked savings account (if applicable) or a Demand Draft will be sent to your last registered mailing address.
Customers who have taken any of the below
Loan against property wherein entity is a borrower and not classified as MSME and end use is for business purpose are not included under the Scheme.
The loan outstanding as on 29th February 2020 will be taken for calculation of the difference between simple and compound interest. The rate of interest on the loan as of 29th February 2020 will be considered for the calculation, any change to the loan outstanding or rate of interest from March 2020 to August 2020 shall not be considered for the purpose of the calculation. For Loans with Home credit facility, the loan outstanding will be net of the line amount maintained on the current account.
The Bank has assessed this on the basis of information available with them as well as information accessible from credit bureaus.
The loan will not be eligible. In case any of the borrowers on the loan has an exposure of more than INR 2 crores across all lending institutions, the loan will not be eligible for the payment.
For accounts closed during the said period, the period of consideration for calculating the payment amount would be from 1st March 2020 till date of closure of the account (not later than 31st August 2020).
The outstanding as on 29th February 2020 will be the reference amount for calculating the differential interest. Any disbursal done post 29th February 2020 is not eligible under the program.
The outstanding as on 29th February 2020 will be the reference amount for calculating the differential. Any new facility sanctioned or disbursed post 29th February 2020 not eligible under the program
The payment shall be credited to the loan account if the loan account is active as of date. If the loan account is closed, the payment shall be made through a Demand Draft which shall be issued favoring the main borrower and sent across to the mailing address maintained in our records.
Securitized loans (wherein servicing is being done by Citibank) ex gratia payment to the eligible borrowers will be credited by Citibank.
Securitized loans which are being serviced by acquiring lending institution, ex-gratia payment shall be credited by the acquiring lending institution.
Customers who have taken any of the below loans
a) Commercial vehicle loans (non-MSME) where the borrower is an individual or proprietorship firm will be eligible
b) Commercial vehicle loans (MSME)
c) Equipment (MSME) loan will be eligible under MSME
Customers whose aggregate of all facilities across all lending institutions is not more than Rs. 2 Crore, as on 29th Feb 2020 (sanctioned limits or outstanding amount) will be eligible for payment.
Further, the loan should not have been reported as NPA as on 29th Feb’20
The eligibility is tracked at a borrower level
The loan outstanding amount at the end of 29th February 2020 will be taken for calculation of the difference between simple and compound interest. The contracted rate of interest for the loan will be considered for the calculation of ex-gratia amount,
The lending institution to assess this on the basis of information available with them as well as information accessible from credit bureaus.
The payment shall be credited to the loan account if the loan account is active as of date. If the loan account is closed, we shall credit your account (details of which are maintained with us) or we will arrange for a Demand draft to be sent across to the mailing address available with us.
The outstanding as on 29th Feb 2020 will be the reference amount for calculating the differential. The rate of interest to be applied for calculating the difference between simple and compound Interest shall be the contracted rate as specified in loan agreement/documentation in respect of the term loan.
For Cash Credit Overdraft, simple interest for the period will be calculated on daily product basis (on daily outstanding at End of day) at the rate of interest as on 29.02.20. compound interest will be calculated for the period at the rate of interest as on 29.02.20 and compounding will be done on monthly basis.
The Bank to assess this on the basis of information available with them as well as information accessible from credit bureaus.
The payment will be credited/applied to your current/CCOD account. In case the loan is closed, it will be credited to linked Citibank current account or a demand draft will be issued to the mailing address as per our records