The Centre has informed the Supreme Court that it will continue to “hand-hold” small and vulnerable borrowers and waive the compound interest (interest on interest) accumulated against their loans during the six-month moratorium period.The waiver of compound interest is only applicable for loans up to Rs.2 crore, an additional affidavit filed by the Ministry of Finance told the Supreme Court.The relief of waiver of compound interest during the six-month moratorium will be for MSME, education, housing, consumer durables, credit card, auto, personal and consumption loans, all up to Rs.2 crore. "The government has decided to continue to hand-hold the small borrowers,” the affidavit said.The government made it clear that “any individual or entity whose loan amount is more than Rs.2 crore will not be eligible for waiver of compounding of interest”.

The Centre has informed the Supreme Court that it will continue to “hand-hold” small and vulnerable borrowers and waive the compound interest (interest on interest) accumulated against their loans during the six-month moratorium period.The waiver of compound interest is only applicable for loans up to Rs.2 crore, an additional affidavit filed by the Ministry of Finance told the Supreme Court.The relief of waiver of compound interest during the six-month moratorium will be for MSME, education, housing, consumer durables, credit card, auto, personal and consumption loans, all up to Rs.2 crore. "The government has decided to continue to hand-hold the small borrowers,” the affidavit said.The government made it clear that “any individual or entity whose loan amount is more than Rs.2 crore will not be eligible for waiver of compounding of interest”.