Assam inks deal with banks for relief to women borrowers

Waiving microfinance loan dues was a poll promise of the BJP

The Assam government on Tuesday inked a deal with 38 microfinance institutions (MFIs) and banks to give relief to poor women borrowers.

This was in keeping with a poll promise of the ruling Bharatiya Janata Party (BJP) to waive off microfinance loans of women.

“With a view to providing succour to poor women borrowers who are not able to return the loan amount of MFIs, the Finance Department of the Government of Assam signed an MoU… for implementation of Assam Micro Finance Incentive and Relief Scheme (AMFIRS), 2021…” an official statement said.

Chief Minister Himanta Biswa Sarma said the memorandum of understanding was historic.

He tweeted: “Borrowers who have been repaying regularly with zero days past due will be provided a one-time incentive to the extent of their outstanding balance, subject to a cap of Rs 25K. The state government will pay the overdue amount for accounts which are overdue but not NPA (non performing asset).”

In another tweet, he said: “Borrowers who are stressed, destitute & whose accounts have become NPA will need to apply through a format verified & certified by the lender. Govt will consider providing partial relief or full relief based on the detailed evaluation.”

He said there were 14 lakh microfinance borrowers in the State till June 2021 and the new scheme would involve ₹12,000 crore credit portfolio, out of which the State government would be required to expend about ₹7,200 crore.

The Chief Minister also said the relief under the scheme shall be extended to all borrowers to the extent of loans from up to three lenders and for loan amount of up to ₹1.25 lakh only. To become eligible for the scheme, borrowers will have to fulfil eligibility or non-eligibility conditions as laid down in the guidelines, he added.