The validity of the special settlement of loans for the non-farm sector has been extended up to December 31, 2011.
About 1.63 lakh defaulters have not been able to reap full benefits of the scheme. In response to their request, Chief Minister M. Karunanidhi on Saturday issued an order, extending the validity of the scheme.
Accordingly, those who have repaid 25 per cent of the principal outstanding [as on March 31, 2007] can clear their dues at one go or in a maximum of four quarterly instalments before December 31, 2011. Those who have not yet joined the scheme can remit 25 per cent of their dues before February 28, 2011 and the balance before December 31.
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When the government came out with the scheme to cover defaulters as on March 31, 2007, the interest rate was reduced from 12 per cent to six per cent and the penal interest, waived. The government had stipulated that the entire repayment of dues should be made before March 31, 2010. Nearly 80,000 borrowers have repaid around Rs.202 crore, an official release stated.