Tamil Nadu Government has had to write off Rs 6,000 crore on gold loans in the Cooperative bank
- Posted on June 14, 2024
- News
- By Arijit Dutta
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Tamil Nadu government waives Rs 6,000 crore in cooperative bank gold loans and loans to women self-help groups, benefiting over 1.4 million people. Interest-free crop loans and disaster relief also provided.
In its recent budget session, the Tamil Nadu government under the Chief Minister M. K. Stalin has promised gold loan of Rs 6,000 crore availed from the cooperative banks, will be waived up to Rs 1 lakh per beneficiary. About 31 millions of people in the state. It relates to loans that were advances against gold up to five sovereigns or less, and is effective up to March 31, 2021.
It has definitely a long way in addressing one of the poll commitments made by the Chief Minister in the DMK’s poll manifesto. But after becoming the power, Stalin said that a government order will be issued. This has been of great relief to 1,312,717 people who had taken jewel loans amounting to Rs 4,818. 88 crore.
In addition to the gold loan waiver, the government has also announced the write off of other loans worth Rs 2,755. Rs 1,99,99 crore provided to 117,617 women self help groups through cooperative banks till March 31, 2021.
The state government has also provided the interest free crop loans of Rs 35. Rs 85 lakh crore to 4,672,849 farmers through cooperative society during the period of May 2021 to December 2023.
Regarding the natural disasters, the statement also provided information on the government’s intent to help families who are affected by such calamities. An amount of Rs 6000 per family was allowed to 2. Cyclone Michaung has devastated 31 million families in the Chennai and its neighboring regions. Likewise, the relief was meant for the families which were affected by floods in Tirunelveli and Thoothukudi districts only.
Also Read: RBI further restricts cash dispensation for gold loan portfolios
The Dravidian model of governance led by the Chief Minister will attempt to make people safer through several schemes to be implemented through the cooperative department as highlighted in the release.
