Opposition in Assam allege BJP govt is making U-turn on the micro finance loan waiver scheme

Opposition Congress in Assam alleged that BJP led government is making U-turn on the micro finance loan waiver scheme.Leader of opposition in Assam assembly Debabrata Saikia in a statement said that during election campaign BJP has promised waiver however now the government is saying that waiver will come with exceptions this is U-turn.Chairman of micro finance waiver committee Ashok Singhal said waiver will exclude income tax payee, persons availing multiple loans, person having four wheelers and a person whose annual income is more than one lakh.

Talking to media persons on Friday, Singhal said, “The loan waiver will come with capping it will not be a blanket waiver. Assam chief minister Himanta Biswa Sarma has promised loan waiver to poor women to provide relief to them. For waiver loan taken upto March 31, 2020 will be considered.”The state’s committee on microfinance loan waiver, formed after Himanta Biswa Sarma sworn in as chief minister, is holding meetings with lenders.Saikia had earlier sought Assam Governor’s assistance in directing the state government to draft a law to protect the interests of rural people.Saikia in a letter to Governor Jagdish Mukhi in 2019 said that the weekly or fortnightly system of loan repayment must be done away with. Many of the victims have been forced to resort to distress-sale of livestock, power tillers, two- wheeled vehicles and even land and houses. Some have been forced to lock their houses and migrate to Bangalore and work in private Companies.” He added, “Few persons have even committed suicide after falling into the debt trap.”Saikia said, “We moved a resolution in the house and BJP led government in last tenure passed Assam Microfinance institutions (regulation of money lending) Act, 2020.”According to the legislation passed by the state assembly with an aim to protect and relieve the economically vulnerable groups and individuals from undue hardship of interest rates and coercive means of recovery by Microfinance institutions (MFI) or money lending agencies or organisations and for creating an effective mechanism to regulate the same government has brought this law. The legislation stipulates that lenders shall ensure that a borrower who has existing loans from not more than two lenders and the current cumulative loan outstanding of a borrower shall not exceed Rs 1.25 lakhs. This limit also shall be taken into consideration in providing any existing loan with the same client from RBI regulated institutions.Saikia said, “We have sought Andhra Pradesh type of law to regulate the sector. Assam government in last budget has provided for corpus fund of Rs 500 Crore for the waiver. We will raise the issue of complete waiver during the budget session of the assembly in July this year.”