Assam cabinet approves Rs 1800 crore for around 11 lakhs of microfinance borrowers

The Assam cabinet on Thursday approved Rs. 1,800 crore to relieve about 11 lakhs microfinance borrowers who make regular payments to banks.

Chief Minister of Assam Himanta Biswa Sarma said the State Cabinet approved Rs. 1,800 crore to relieve about 11 lakhs microfinance borrowers (maximum up to Rs. 25,000), who carry out loans regular payments to banks.

The chief minister said these people will receive checks in December. “Other people willing to request a waiver will apply on a portal that will soon be open.”

Last month, the government of Assam signed a memorandum of understanding with microfinance institutions for the implementation of the Assam Micro FinanceIncentive and Relief Scheme (AMFIRS), 2021.

The state government would be required to spend almost Rs. 7,200 crore on loan forgiveness.

Sarma said earlier that the Assam government, at its first cabinet meeting, formed a committee chaired by Housing and Urban Affairs Minister Ashok Singhal to keep its election promise to forgo microphone lending. -finance to help poor women who are unable to return the loan amount.

“As a result, the Assam Microfinance Incentive and Relief Program was designed with the aim of balancing the long-term vision of ensuring the continuity of microfinance to support the economic activities of low-income and poor households. of the state and to provide relief to clients eligible for repair. current stress in the microfinance industry due to various operational reasons, ”said the Chief Minister.

Stating that until June 2021 there were 14 lakh microfinance borrowers in the state, the chief minister informed that the new program would involve Rs. 12,000 crore loan portfolio, of which the state government would be required to spend around Rs. 7,200 crore.

The CM said the relief under the program will be extended to all borrowers to the extent of loans from up to 3 lenders and for loan amounts of up to Rs. 1.25 lakh only. To become eligible for the program, the borrowers concerned will have to meet the eligibility or non-eligibility conditions as defined in the guidelines.

The Chief Minister further stated that under the program borrowers who regularly repay zero days late will receive a one-time incentive up to their outstanding balance, subject to a cap of Rs. 25,000 / –

Likewise, borrowers with overdue payments ie overdue accounts but not the NPA, the state government will pay the overdue amount. All of these borrowers will be encouraged to make timely installment payments so that their accounts remain standard and the credit culture is strengthened. To induce such credit discipline, the government, after observing these borrowers for a period of time, as may be decided in mutual consultations on a case-by-case basis, makes a one-time incentive payment of Rs. 25,000 / – or equal to the outstanding balance, whichever is lower. In addition, stressed, destitute borrowers whose accounts have become NPA will need to apply through a format verified and certified by the lender. The government will consider providing partial or full relief on the basis of a detailed assessment.

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