In a hope to help borrowers and provide them some relief, when they are at a financial loss due to coronavirus lockdown, Guardian Bank in Bengaluru has announced a rebate of 50% on interest on loans.
Bengaluru: During these testing times, various corporate and financial entities have been taking various measures to make the lives of their customers slightly easier.
Many banks on their part, have been waiving charges of various services like ATM withdrawals, maintenance of minimum balance of savings accounts, digital transactions and so on. Various public sector (PSU) banks have announced loan schemes to help retail borrowers.
In a relief to borrowers, Guardian Bank in Bengaluru has announced 50% rebate on interest on loans. This is the first bank in India to have taken the initiative to help the borrowers at the time of crisis.
In an exclusive with Asianet Newsable, chairman of Guardian bank Collin Timms said, "The bank has announced a rebate of 50% on interest on loans for the months lockdown has been imposed."
In simpler terms, the bank has announced that interest rates have been slashed by 50% for the months of March and April and this initiative will continue till lockdown is lifted.
Once the lockdown is lifted, the interest collected will be based on the market trends and there will be no change in the scale.
The chairman said, "We have written to the RBI about the loan interest rebate and it will be implemented. The bank will bear the cost and pay 50% of the interest with our own funds."
However, Guardian Bank has not waived off charges of various services like ATM withdrawals, maintenance of minimum balance of savings accounts, digital transactions and so on.
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Last Updated 17, Apr 2020, 4:45 PM