CHENNAI: The department of Cooperatives would launch a special loan settlement scheme to benefit 4.73 lakh members, who availed loans to the tune of Rs 1931 crores, of cooperative societies.

The scheme would facilitate members to repay their loans and empower the cooperative societies financially.

Under the scheme, the beneficiaries should pay 25% of the outstanding loan amount within three months from the date (December 14, 2023) of GO published regarding the scheme and entered into an agreement with the respective cooperative society.

The remaining 75% of the loans should be paid within six months from entering into the agreement, according to a statement issued on Wednesday.

Nine percent of interest would be charged for the loan amount from the day of availing the loan to end of agreement period with the society under the scheme, while the penalty, interest for penalty and other interests would be waived, further said the order.