The Government of India has announced the scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts (01-03-2020 to 31-08-2020) on 23-10-2020, which mandates ex-gratia payment to certain categories of borrowers by way of crediting the difference between simple interest and compound interest for the period between 01-03-2020 to 31-08-2020 by respective lending institutions.

RBI vide its guidelines dated 26-10-2020 has advised all lending institutions to be guided by the provisions of the scheme and take necessary action within the stipulated timeline.

In accordance with the said guidelines, Shubham is taking necessary steps to provide the benefit to the borrowers under this scheme.

Frequently Asked Questions

The Banks/Lending institution will provide ex-gratia payment to the borrower account of the difference between compound interest and simple interest on loan accounts for the period from 01-03-2020 to 31-08-2020 (6 months/184 days).

The main features of this scheme are

  • Loan accounts with sanctioned limits and outstanding amount not exceeding Rs.2 crores (aggregate of facilities with all the lending institutions) as on 29-02-2020 will be eligible for ex-gratia payment.
  • Loan accounts should be standard as on 29-02-2020.
  • The relief shall cover the following segments – MSME Loans, Education loans, Housing Loans, Consumer Durable Loans, Credit Card Dues, Automobile loans, Personal loans to Professionals and Consumption loans.
  • The period considered for refund shall be from 01-03-2020 to 31-08-2020, i.e. 6 months/184 days.

Individual lending institutions will finalize the list of eligible borrowers for the relief based on the guidelines.

No. The ex-gratia relief will be credited to the loan account of all eligible borrowers.

  • The differential amount will be credited to the respective loan account(s).
  • For loan accounts closed between 01-03-2020 to 31-08-2020 refund will be credited to the borrower’s bank account.
  • Upon the credit of the amount, Shubham will inform the borrower via SMS.
  • Whether your loan is running/active or closed, you are not required to apply for the ex-gratia scheme separately.
  • Ex-gratia refund amount for closed loans will be transferred to the bank account of the borrowers.
  • Rate of interest on the loan account as on 29-02-2020 will be applied for calculating the differential interest component.
  • Simple interest for the period will be calculated based on outstanding as on 29-02-2020 compounding of interest shall be at monthly rests.

The amount of the differential interest will be credited into the loan account by 5-11-2020.

Customer Grievance Redressal

In case of any complaints or grievances regarding ex-gratia interest relief, Shubham requests the borrower to make an entry in the complaint register maintained at the Branch and ask the Branch Manager to provide a Complaint Number for the same. Shubham will revert/ resolve the complaint within 7 working days of receipt of the same. The resolution of the complaint will be communicated to the borrower in writing or at the Branch.

If the borrower does not receive any response for the complaint/query within 7 working days, he/she can call us at the toll free number 18002582225 or send an email to customercare@shubham.co or write to:
Office of the CEO
Shubham Housing Development Finance Company Limited
Shubham House - 425, Jwala Mill Road,
Udyog Vihar-IV, Gurgaon, Haryana-122015

In case the complaint has not been resolved to the satisfaction of borrower, he/she can also approach the Complaint Redressal Cell of National Housing Bank by lodging his complaint in online mode at the link https://grids.nhbonline.org.in or in offline mode or by post, in prescribed format available at link https://nhb.org.in/citizencharter/Complaint_form.pdf