Stalin asks GoI to provide moratorium to families, businesses in cyclone affected dists
Adding that many of the families and business entities would be finding it impossible to repay their loan dues in these difficult circumstances, the Tamil Nadu CM said that there was an urgent need to mitigate the burden of immediate debt servicing by relaxing repayment schedules till they come out of this crisis.
Chief Minister MK Stalin
CHENNAI: Chief Minister MK Stalin on Thursday urged union finance minister Nirmala Sitharaman to provide a moratorium on loan repayments to families and business entities affected by the cyclone Michaung in Chennai, Chengalpattu, Kancheepuram and Tiruvallur districts.
Drawing her attention to the plight of 37 lakh families in the aforementioned districts who suffered significant disruption in their livelihood and damages to properties due to relentless rain, Stalin said, "Although we have been able to restore normalcy in their daily lives, the impact on their livelihood still lingers for many. Small businessmen, traders and MSME units impacted by the floods are yet to return to their regular economic activities."
"I request your urgent intervention to direct all commercial banks (including regional rural banks, small finance banks and local area banks), co-operative banks, all-India Financial Institutions and Non-banking Financial Companies (including housing finance companies) to issue a moratorium for a period of 3 months from 1st December, 2023 to 29th February 2024 on payment of all instalments in respect of all term loans (including agricultural term loans, retail and crop loans) availed by families and business units in these four districts, " said the CM, in his demi-official letter to Ms Sitharaman.
Adding that many of the families and business entities would be finding it impossible to repay their loan dues in these difficult circumstances, the Tamil Nadu CM said that there was an urgent need to mitigate the burden of immediate debt servicing by relaxing repayment schedules till they come out of this crisis.
"The repayment schedule and all subsequent due dates, as well as the tenor for such loans may be shifted across the board by three months, " Stalin said, requesting the minister to permit lending institutions to allow a deferment of three months on payment of interest on all such facilities outstanding as on 1st December, 2023 with respect to working capital facilities sanctioned in the form of cash credit/overdraft.
