State issues GO to write off jewel loans under 5 sovereigns

Chennai

According to the GO, a family, with a ration card, will be eligible to obtain loan waiver only for five sovereigns (40 grams of gold jewels) pledged in cooperative banks till March 31, this year. It has been estimated that the pending loan amount in cooperative societies amounts to Rs 17,114.64 crore and 16 lakh persons will be benefited by the loan waiver. The government has issued detailed guidelines about the criteria for availing loan waiver. According to the GO, government employees, cooperative department staff and their families are not eligible to avail the loan waiver, but persons receiving family pension are eligible for the loan waiver. Similarly, Sri Lankan Tamils are eligible.