Loans of Women SHGs and jewel loans of poor, farmhands waived

CHENNAI: In what could be perceived as election-time largesse to the people, Chief Minister Edappadi K Palaniswami on Friday made two major announcements - waiver of loans availed by members of Women Self Help Groups from cooperative banks and societies; and loans availed by agricultural labourers, and poor and downtrodden families from cooperative institutions, by pledging up to six sovereigns of jewellery.

Making these announcements in the Assembly, the Chief Minister said representations were made from SHG members saying they couldn’t repay loans taken from cooperative banks and societies due to the pandemic. So to provide succour, pending loans of poor women members of SHGs will be waived, he said.

Stating that more than one lakh SHGs, with more than 15 lakh members, are functioning in the State, Palaniswami pointed out that most of these women are below the poverty line, and avail loans from cooperative banks for their small businesses.

Similarly, the poor, ordinary people and agricultural labourers face great difficulties in repaying loans secured after pledging jewels, he said. “Though the spread of the virus has been contained to some extent, the economy has not recovered fully.

Considering the inability of farmhands and poor to repay loans, and in accordance with views of economic experts, the government decided to waive loans availed by pledging up to six sovereigns of jewellery,” he said.