In relief to 14L women, Assam govt to waive off their loans

BJP delivers on election pledge

In what may be huge relief to more than 14 lakh borrowers, the Assam government has signed a memorandum of understanding (MoU) with 38 microfinance institutions and banks on Tuesday to waive off loans taken by poor women in the state.

Pointing out that the signing of the MoU will lead to implementation of the Assam Micro Finance Incentive and Relief Scheme 2021, which was promised by the BJP in its election manifesto, Assam CM Himanta Biswa Sarma said the scheme will have a `12,000-crore credit portfolio, including about `7,200 crores to be spent by the government.

The MoU also laid down duties and responsibilities of the two parties — the state government and the lenders, including six universal banks, 25 NBFC-MFIs, two NBFCs, and four small finance banks — for ensuring the successful implementation of the scheme.

“The relief scheme will ensure continuity of micro-finance for supporting economic activities of poor households and help eligible customers in overcoming stress in the microfinance sector due to various operational reasons” he said.

Mr Sarma said that the scheme emphasises responsible lending by financial institutions in compliance with the Reserve Bank of India and industry regulations

in letter and spirit, while promoting responsible borrowing and timely repayment culture. The chief minister said that all eligible borrowers can take loans up to `1.25 lakhs from up to three lenders under the scheme and those with a track record of regular loan repayments will be provided a one-time incentive to the extent of their outstanding balance, capped at `25,000.

Similarly, in the case of borrowers whose repayments to the banks are overdue but do not fall in the category of non-performing assets (NPA), the state government will pay the overdue amount.

Further, borrowers whose accounts have become NPAs need to apply through a format verified and certified by the lender. The government will then consider providing partial relief or full relief based on a detailed evaluation, according to the scheme.