The LDF government in Kerala on Friday approved a new debt relief scheme for low income and poor people who face the threat of revenue recovery proceedings after they fail to repay loans taken from various financial institutions under the government.
The scheme, expected to cause an additional burden of Rs 40 crore to the exchequer, would benefit more than 10,000 persons, an official release issued after the Cabinet meeting said.
Chief Minister Pinarayi Vijayan gave instructions to officials to prepare a comprehensive one-time debt relief scheme in the wake of several memoranda received from persons who face revenue recovery proceedings, it said.
The relief is for those who had taken loans from the State Housing Board, Scheduled Caste and Scheduled Tribe Backward Welfare Corporation, State Women’s Development Corporation, The Kerala State Handicapped Persons Welfare Corporation and Revenue Departments.
The principle amount, interest and penal interest on loans up to Rs 5 lakh would be waived, the release said.
Besides, those who face recovery proceedings even after remitting one and half times more than the principal amount of loan would also be given concessions.
The loan repayment period also would be rescheduled, it said.