Wayanad: Loans will be written off, banks will submit proposal; decision taken at bankers' committee meeting following CM's demand

THIRUVANANTHAPURAM: It was decided that banks would submit a proposal to their director boards to fully waive off the loans of flood-affected people in Wayanad. The decision was taken at the state-level bankers' meeting after Chief Minister Pinarayi Vijayan strongly demanded that banks should be willing to waive loans, given that the country and the world are standing with the state government to support the rehabilitation of those affected by the disaster.

All loan recovery proceedings, including attachment of properties and automatic loan instalment deductions from accounts, will be halted immediately. EMIs deducted after July 30 will be refunded. A personal loan of Rs 25,000 each will be provided without collateral for a repayment period of 30 months. It has also been decided to restructure existing loans into new loans. These decisions will be implemented starting today

The Chief Minister demanded that banks should take loan waiver measures to help the landslide-affected people of Wayanad.

"Unlike usual times when the government reimburses written-off loans, banks should come forward to support disaster relief efforts on their own. Most of the affected individuals had taken loans for essential needs like education, housing, and agriculture. Many have lost their entire families. From the banks' perspective, the loss will be a negligible fraction of their total financial transactions," said the Chief Minister.

Loans will be restructured

• Loans, including agricultural, allied agricultural, medium, small industries, education, and housing loans, will be restructured, with revised instalment schedules. New livelihood loans will be provided on lenient terms.
• The amounts credited to the accounts of disaster-affected individuals will not be diverted towards loan repayments.

3220 individual, loans of 35.32 crore
According to estimates, around 3,220 individuals with total loans of ₹35.32 crores from 12 banks, including Kerala Bank and Gramin Banks, have been affected by the landslides.