Refund of Interest on Interest

The Supreme Court of India (‘SC’ or ‘Court’) had given its judgment on March 23, 2021 for a complete waiver of interest, that is, compound interest, charged by lenders during Covid moratorium. In this regards, RBI has issued a circular dated April 07, 2021, directing lending institutions to abide by SC judgment. Meanwhile, the IBA in consultation with Banks, NBFCs, FICCI, ICAI, and other stakeholders have adopted a guideline with a uniform methodology for a refund of interest on interest/compound interest/penal interest.
The Relief presupposes the following: (a) Payment defaults, if any, during the Moratorium Period (b) Any Compound Interest, Penal Interest or Penalty charged, for the Payment defaults (c) Fresh Disbursements/Pre-payments during moratorium period.

Please refer detailed FAQ in regard to the calculation logic, payment process and necessary communication.

Pursuant to the RBI & IBA guidelines, PNBHFL has abide by the instructions and applicable refund amount has been credited in the Repayment account of eligible Borrower(s). The necessary details of eligibility, applicable amount as per calculation, any important information can be derived from the fields enlisted below.