Guwahati: The state budget, which was presented by the Minister of Finance Ajanta Neog, came as a big assistance for microfinance loan borrowers, which the state government has proposed a budget allocation of Rs 7,500 Crore.
The main features of this scheme include client categorization into three groups led by the first category of clients who have regularly pay their loans.
Neog proposes to give them incentives that support Rs 25,000 to maintain good credit discipline.
Category II clients are those whose payments matured one to 89 days.
For this client, he said the amount that was due would be paid.
“After that, once their account is classified as standard and they begin to serve its installments on time, they will be entitled to an incentive of Rs 25,000,” he added.
Category III clients are stress and destitutes which are their accounts to NPA (non-performing assets).
Neog says such borrowers need to be applied through the format to be considered under the scheme.
“As immortalized in the scheme, the microfinance lender is now fully bound by extinguishing code practice code guidelines.
Thus, following this, the benefits of more than Rs 4,000 Crore will begin to bring borrowers from direct lenders.
It will benefit the lakh from such borrowers Immediately, “he said.
Neog said the total requirements for the neglect of this loan were around Rs 12,000 Crore.
However, once the loan institution extends the benefits of borrowers under a fair practice code, it notes that the funding requirements of the state government will fall from Rs 12,000 Crore to around Rs 7,500 Crore, which has been intended in the budget.
To protect the economically vulnerable part of the difficulties of interest, the government imposed laws ‘Assam Micro Finance (Money Loan Regulation), 2020’.
Village women rose with weapons against microfinance companies because several lenders were allegedly adopting coercion facilities to recover interests.
But in pursuing the cabinet decision on May 11, the Microfinance Institution Committee was formed based on the leadership of the Minister of Ashok Singhal to prepare a road map to reduce the tribulation of the borrowing of this sector.
The committee recommends incentives for borrowers to mitigate their difficulties, which are then approved by the Country Cabinet as ‘Assam Micro Incentives and Relief Schemes (AMFIRS), 2021’.