Assam government to roll out microfinance assistance program and distribute checks to borrowers
The Assam government will begin distributing checks to the segment of the state’s microfinance clients, who regularly repaid their loans, from Sunday to offer them incentives under the announced mega microfinance aid program. earlier this year. More than 10 lakh borrowers fall under this segment and government spending to induce them would be around Rs 2000 crore.
For starters, the government led by Himanta Biswa Sarma is expected to roll out the One-Time Special Relief during a three-day event starting November 28. This will be the first phase of the check distribution program. After the announcement of the special aid on June 18, the government signed a memorandum of understanding with microfinance lenders for the implementation of the program in August.
âFrom November 28, the government will start distributing checks to Category 1 customers, who were regular in refunds without any contributions as of March 31, 2021. Each customer will receive a sum of Rs 25,000 or overdue, whichever is lower. of both, as an incentive to continue to maintain good credit discipline. More than 10 lakh clients will benefit from this benefit, and around 2,000 crore rupees is the government payment for this category, âManoj Nambiar, MD, Arohan Financial Services told FE. Under the outline of the special relief, the government will also pay overdue customer arrears to make them regular and clear the outstanding loan for really stressed customers affected by the pandemic. Speaking at the signing of the MoU in Guwahati in August, Sarma said the program, Assam Micro Finance Incentive and Relief Scheme (AMFIRS), 2021, would involve a loan portfolio of Rs 12,000 crore, on which the state government would be required to spend around Rs 7,200 crore. âCustomers, who were regular in refunds, are singled out first so that the incentive and rewards come first rather than relief for delinquent customers. These customers have been regulars and they have kept the name of the state high by their behavior. This is why the chief minister and the government give them priority in the first place, âsaid Nambiar, who is part of the steering committee of lenders.