Chennai, February 26 (PTI) Loans obtained from cooperative societies pledging jewelry for up to six sovereigns and outstanding loans from women self-help groups members in banks and cooperative societies would be waived, announced Tamil Nadu Chief Minister K Palaniswami, here on Friday.
SHG members made statements that they were in no position to repay loans taken from banks and cooperative societies due to the COVID-19 pandemic, Palaniswami said at the Assembly, adding that they had asked to waive the loan.
Therefore, to provide relief, outstanding loans from poor women members of SHGs would be waived, he said in a statement in the House.
Currently, “more than lakh SHGs are functional and, in such groups, more than 15 lakh women are members. The majority of women in these groups belong to poor families who are below the poverty line, ‘he noted.
Likewise, the poor, ordinary people and agricultural workers face great difficulties to repay secured loans after the jewel pledge, he said.
These loans were taken by them in cooperative societies to address the financial difficulties caused by the COVID-19 pandemic, he noted.
Although the spread of the virus has slowed to some extent, the economy has not fully recovered, he said.
Considering the inability of agricultural workers and the poor to repay jewelry loans, the representations received from them and the opinions of economic experts, he said that loans granted in the form of pledged jewelry, up to six sovereigns would be dispensed with.
The objective is high, which is to help the poor and ‘the Amma government renounces jewelry loans for up to six sovereigns obtained from cooperative societies’. The move is aimed at helping the poor who took out loans after being hit by the pandemic-induced economic crisis and were now unable to pay their debts, he said. PTI VGN SS PTI PTI