Ans:
To explain this in simple terms, the COVID-19 ex-gratia scheme, announced by the government would provide relief to eligible borrowers by reimbursing the difference in the two rates of the compound and simple interest charged. It is applicable to the loan period between March and August 2020. This amount is either credited to their bank accounts where they availed the loan or in the form of a credit to their ongoing outstanding loans to reduce their loan liability.