HT Bureau
GUWAHATI, Sept 23: In a significant step towards fulfilling election promises made during the 2021 State Assembly elections, chief minister Himanta Biswa Sarma attended the ceremonial distribution of relief under “Category – III” of the Assam Microfinance Incentive & Relief Scheme (AMFIRS) 2021. This event took place at the Janata Bhawan Complex in Dispur on Saturday.
Under Category – III of AMFIRS 2021, borrowers whose accounts had become non-performing assets (NPAs) as of March 31, 2021, and have an outstanding principal amount of up to Rs 25,000 are eligible for benefits. The state government is allocating Rs 291 crore as compensation to microfinance institutions. This move is expected to benefit approximately 2.2 lakh borrowers across the state. In return, the microfinance institutions will issue “no due certificates” to these borrowers, making them credit-worthy again within the formal financial system.
Related Posts:
Speaking at the event, chief minister Himanta Biswa Sarma expressed his happiness that around 2.2 lakh female microfinance and bank loan borrowers would regain their creditworthiness through the Category – III relief. He highlighted the unique nature of the Assam Microfinance Incentive & Relief Scheme, which aims to provide relief to eligible borrowers who had taken small loans from microfinance institutions and the formal banking system but were unable to repay the borrowed amount in full due to certain circumstances.
Chief minister Sarma expressed gratitude to the microfinance institutions for waiving approximately Rs 300 crore in interest income to facilitate the successful implementation of Category – III relief measures. He appealed to beneficiaries to ensure timely and full repayment of any future loans, emphasising that providing beneficiaries with “no due certificates” would aid in universal financial inclusion. He also mentioned the upcoming launch of “Category – IV” relief.
The chief minister cited the Covid-19 pandemic and the anti-CAA movement as primary reasons for loan repayment defaults. With these challenges in the past, he stressed the importance of building a healthy credit habit in the state.
Regarding recent media reports alleging backtracking on promises to provide relief to microfinance loan defaulters, chief minister Sarma clarified that only loans that had become non-performing as of March 31, 2021, would be eligible for coverage under AMFIRS 2021.
The event was attended by various ministers from the Assam Cabinet, senior officials, and representatives of microfinance institutions.
