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COVID-19 Ex Gratia Interest Relief FAQs

Frequently Asked Questions

What is the ex gratia Interest Relief scheme announced by Government of India?

Bajaj Finance Limited will provide Ex-Gratia payment to customer’s account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding up to Rs.2 crores (aggregate of all the borrowings/ facilities from all the banks and financial Institutions) for the period from 1st March 2020 to 31st August 2020 (6 months / 184 days).

What are the eligibility criteria of the ex gratia scheme?

The main features / highlights of the scheme are as under:
a. Loan accounts with sanctioned limits and outstanding not exceeding Rs.2 crores (aggregate of all facilities with all the lending institutions) as on 29.02.2020.
b. Loan accounts should be standard in the books of the lending institutions as on 29.02.2020.
c. The relief shall cover the following segments – MSME Loans, Education loans, Housing Loans, Consumer Durable Loans, Credit Card Dues, automobile loans, personal loans to professional loans.
d. The period reckoned for refund shall be from 1st March 2020 to 31st August 2020, i.e. 6 months period / 184 days.

How will I get to know the benefit amount and if I have got the benefit under the scheme or not?

Upon credit of the differential amount to the respective loan account(s), BFL will notify the same to you vide an SMS to your registered mobile number. You can click here to login to Customer Portal Experia and go to My Relations tab to check the exact amount and calculation for respective loans in your loan statement.

Which customer are eligible to benefit from this scheme?

Customers whose aggregate of all loans with lending institutions is less than Rs. 2 crores (sanctioned limits or outstanding amount) and any loan account which is standard and not categorized as Non-Performing Asset (NPA) as on 29.2.2020 will be eligible for Ex-Gratia payment under this scheme. Customers will not be able to avail this facility for these loans below:
◦ ‘Loan against Security’
◦ ‘Loan against Fixed Deposits’

What Rate of Interest (%) shall be considered for calculating the package, i.e. ROI (%) considered at the time of sanction or ROI (%) as on 29.02.2020?

• In respect of Education loans, Housing loans, Automobile loans, Personal loans to professional loans, the rate of interest to be applied for calculating the differential interest component shall be the contracted rate as specified in loan agreements/ documentation applicable as on 29th February 2020.
• In respect of consumer durable loans, the rate of interest to be applied for calculating the differential interest component shall be the contracted rate as specified in loan agreements/ documentation. In case where no interest is being charged on equated monthly instalments for a specified period, for the purpose of relief, interest may be applied at MCLR/ Base rate.
• MSME: In respect of term loans / Demand Loan, the rate of interest for the purpose of calculating the differential will be the contracted rate as specified in the loan agreements/ documentation applicable as on 29th February 2020. In respect of Cash Credit/ Overdraft, the rate of interest for the purpose of calculating the differential shall be the rate of interest prevailing as on 29.02.2020.

How will the Ex-Gratia Interest Relief amount be calculated?

Below is a sample calculation of Ex-Gratia amount for different rate of interest -

Sample calculation of Ex-Gratia Amount
Loan Interest Rate Outstanding Loan Amount
Rs.5 Lacs Rs.10 Lacs Rs.15 Lacs Rs.20 Lacs Rs.50 Lacs Rs.1 Cr
9% 426 852 1278 1704 4261 8522
11% 638 1276 1914 2552 6380 12759
13% 893 1786 2679 3572 8930 17861
15% 1192 2383 3575 4766 11916 23832

Do I need to place a request to get the Ex-Gratia Interest refund?

No, Bajaj Finance Limited will process and credit your loan account on or before 5.11.2020.

My Loan has been restructured, what is the impact of the same?

Yes, you will be eligible for the scheme.

I have been paying my EMI’s in cash, will I get the refund in cash or cheque?

Neither, Bajaj Finance Limited will process and credit your loan account on or before 5.11.2020.

If I have already closed my loan account after 1st March 2020, how will the differential amount be paid to me?

In case the loan is closed and there is no overdue in any other loan, the amount will be refunded in your registered bank account. In case you do not maintain any such account with the lending institution, you can advise Bajaj Finance Limited the details of the account in other banks where the amount can be credited /remitted to. Click here to register your E-mandate and update alternate bank account details.

I have taken partial Moratorium; will I be eligible for this relief package?

The Ex-Gratia payment under this scheme shall be applicable if you fall under below categories: (1) had fully availed or partially availed or not availed of the moratorium on repayment announced by RBI ride its circular DOR. No. BP.BC.47/21.04.048/ 2019-20, dated 27.3.2020 and extended on 23.5.2020.

I have not taken Moratorium. Will I also be eligible for Ex-Gratia interest refund?

Yes. The relief will be available to you irrespective whether you have availed or partially availed or not availed the moratorium on repayment as announced by RBI vide DOR. No. BP.BC.47/21.04.048/2019-20 dated 27.03.2020 and extended on 23.05.2020.

Are “partially disbursed loans” covered under the relief package?

Yes, “partially disbursed loans” are covered under the relief package provided that the sanctioned and outstanding amounts do not exceed Rs. 2 Cr. The outstanding as on 29.02.2020 shall be the reference amount for calculating the differential interest amount.

Will I get the Ex-Gratia interest refund if my loan account is NPA?

No. The loan should not be a “Non-Performing Asset” (NPA) as on 29.02.2020 to be eligible for the said relief.

What is the last date for raising queries relating to Ex-Gratia?

Any requests and queries for Ex-Gratia interest refund will be taken until 30th Nov’20. Requests of this nature will not be entertained beyond the said date.

What will be the treatment of penal interest/ penalties while arriving at the rate of interest?

The contracted rate / interest rate prevailing as on 29.02.2020 which is considered for calculating the interest differential will exclude any penalties or any penal rate of interest applied in the account.

What will be the treatment for the repayments / credits made in term loan/ demand loan during the period from 1st March 2020 to 31st August 2020?

The outstanding as on 29.02.2020 will be the reference amount for calculating the differential. Any repayment / credits subsequent from 01.03.2020 – 31.08.2020 shall be ignored for the purpose of calculation.

How will Bajaj Finance Ltd assess whether a customer has aggregate loan facilities up to INR 2.00 CR from the banking system?

We will assess this based on information available with us, as well as information accessible from credit bureaus.

Will my Non-Fund based limits as on 29-02-2020 be included for arriving at the eligibility amount of up to INR 2 crore?

No. Non-fund-based limits will not be included for arriving at the eligibility.

I have a query related to COVID-19, Ex-Gratia Interest relief. Where can I reach out for support?

• For queries related to COVID-19, Ex-Gratia Interest Relief, you may please follow the steps here for support:
Click here and and login to Customer Portal Experia
• In the ‘Raise a Request’ page, select your loan / loan type and product description
• Please select:
  • Query Type: Interest Refund
  • Query Description: BFL Ex Gratia Payment Related
• Select your query under the tab: Add New Query
• Submit the request and our service team will respond to you soon