Tamil Nadu Unveils Debt Relief Initiative: Special Camps to Ease Borrower Burdens
Posted on: 28/Feb/2024 10:44:42 AM
Minister Periyakaruppan has unveiled an ambitious plan aimed at easing the burden of debt for borrowers across Tamil Nadu. Special camps are set to kick off on March 2 at Cooperative Societies and Cooperative Banks throughout the state, designed to streamline the process of settling arrears. This initiative comes hot on the heels of the implementation of a comprehensive debt resolution scheme, geared towards alleviating the hefty interest loads faced by borrowers while bolstering the financial stability of cooperative institutions.
The scheme casts a wide net, encompassing various types of loans including those for small businesses, housing, self-help groups, as well as agricultural transactions. It extends its coverage to overdue loans as of December 31, 2022, offering a lifeline to those ensnared in financial strain.
Key provisions of the scheme include a fixed interest rate of 9 percent on the principal amount from the loan`s disbursement date to the contract execution date. This move sees the waiving of additional interest, penalty charges, and other associated fees, providing much-needed relief to borrowers grappling with mounting debts.
Under the terms of the scheme, borrowers are obligated to settle 25 percent of their outstanding dues within three months of its issuance. Subsequently, they are required to formalize an agreement with the relevant cooperative bank or association. The remaining 75 percent can be repaid in installments spread over a six-month period following the execution of the contract.
To ensure maximum participation and uptake among borrowers, special camps will be held until March 13, offering individuals the opportunity to engage directly with cooperative representatives and formalize agreements in line with the scheme`s provisions.
This concerted effort by the government underscores its commitment to fostering financial inclusivity and easing the burden on borrowers grappling with debt. By offering a structured framework for debt resolution and providing avenues for repayment that are both feasible and realistic, the scheme holds the promise of a brighter financial future for many across Tamil Nadu.
