Assam shells out Rs 291 crore; to benefit 2.2 lakh loan borrowers

GUWAHATI: Taking another giant leap forward towards fulfilment of promises made during campaigning for the 2021 State Assembly elections, Chief Minister Himanta Biswa Sarma attended as Chief Guest the ceremonial distribution of relief under ‘Category III’ of the Assam Microfinance Incentive and Relief Scheme (AMFIRS) 2021 at an event held at the Janata Bhawan Complex in Dispur on Saturday. Borrowers whose accounts had turned non-performing assets (NPA) as of March 31, 2021 and had outstanding principal amounts up to Rs 25,000 are deemed to be eligible for benefits of Category III of AMFIRS 2021. The state government is shelling out a total of Rs 291 crore as compensation to the lenders (microfinance institutions), and this move is expected to benefit a total of around 2.2 lakh borrowers from across the state. In return, the concerned microfinance institutions shall issue ‘no due certificate’ to the borrowers, thus making the latter credit-worthy again under the formal financial system.

Speaking at the event organized at the Assam Secretariat Complex in Dispur, Chief Minister Himanta Biswa Sarma expressed happiness at the prospect of as many as 2.2 lakh female microfinance and bank loan borrowers again becoming credit-worthy through the Category III relief launched on Saturday. Referring to the Assam Microfinance Incentive and Relief Scheme as a first of its kind in the country, the Chief Minister said its main objective was to provide relief to eligible borrowers who had availed small loans from microfinance institutions and the formal banking system but, owing to certain circumstances, couldn’t repay the borrowed amount in full. Expressing his gratitude towards the microfinance institutions for agreeing to waive around Rs 300 crore in interest income for the sake of successful implementation of Category III relief measures, Chief Minister Dr. Sarma appealed to the beneficiaries of the scheme to ensure from now onwards any amount borrowed from financial lenders is repaid in full and on time. Providing the scheme’s beneficiaries with a ‘no due certificate’ would also aid in the process of universal financial inclusion, the Chief Minister added. The Chief Minister also spoke about the launch of ‘Category – IV’ relief in the days to come.

The Chief Minister further said the primary reasons behind the default in loan repayment can be said to be the COVID-19 pandemic scenario and the anti-CAA movement. Now that the pandemic period and days of strife have been left behind, it is important that a healthy credit habit is built up in the state, the Chief Minister added. The Chief Minister, referring to recent media reports alleging the state government was backtracking on its promises to provide relief to microfinance loan defaulters, put the record straight by making it clear that only those loans that had become non-performing as of March 31, 2021, shall be eligible for coverage under AMFIRS 2021.

The event was also attended by my Ministers of Assam Cabinet, Ajanta Neog, Jayanta Mallabaruah, and Chandramohan Patowary, along with a host of senior officials and representatives of microfinance institutions, stated a press release.

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