Assam CM launches third phase of microfinance loan waiver scheme

Assam Chief Minister Himanta Biswa Sarma on Saturday rolled out the third phase of a scheme to waive microfinance loans availed by women of the state, benefitting over 2.23 lakh borrowers.

Under this phase of the Assam Micro Finance Incentive and Relief Scheme 2021 (AMFIRS), borrowers whose loan accounts turned into non-performing assets would be offered an outstanding principal balance of up to Rs 25,000.

"With a total relief cost of Rs 291 crore under this category, the state's womenfolk will once again be able to avail fresh loans for their continued prosperity," Sarma said at an official function here.

Altogether 2,22,949 borrowers will benefit from this scheme, he said, adding that the lending institutions will waive the accrued interest and penalties for these women and give them 'no due' certificates immediately.

Expressing his gratitude towards the microfinance institutions for agreeing to waive around Rs 300 crore in interest income under the category-III relief measures, Sarma appealed to the beneficiaries to ensure that any amount borrowed from financial lenders is repaid in full and on time from now onwards.

"This is a one-time arrangement from the government to support poor microfinance borrowers and to bring back the credit and repayment culture in Assam. All the borrowers are encouraged to maintain credit discipline by repaying their loans on time to keep their accounts active," he said.

The AMFIRSM 2021 was divided into three categories.

In category I, incentives worth Rs 1,600 crore were provided to 8,72,739 borrowers, while 97,938 women benefitted under the the second phase of the scheme.

"In the next phase, we will evaluate the cases of women taking loans up to Rs 50,000. The department concerned will start working on that," Sarma said.

A total of around 24 lakh women taking loans from microfinance institutions will be benefitted over the next few years.

"Assam is adopting a unique journey. Whatever we promised during the last election, we are implementing all those 100 per cent. Today, the microfinance loan waiver scheme for lakhs of mothers to make them credit-worthy is a historical step.

"I am very happy that whether it is one lakh jobs or microfinance loan waiver scheme or finance for self-employment -- all promises are being fulfilled," Sarma asserted.