TN govt waives Rs 2,674 cr loan of women SHGs

The order stated that the outstanding principal due amount for SHGs till March 31, this year, excluding the penalty on interests and other expenses was Rs 2,459.57 crore and the interest for the principal amount was Rs 215.07 crore. Both the principal amount and the interest amount, amounting to Rs 2,674.64 crore, would be waived. For the purpose of repaying the loan amount for the cooperative societies, the government allotted Rs 600 crore for the current financial year and the remaining amount would be paid in four years with interest.

The announcement on loan waiver was made by the Finance Minister during the State Budget on August 13. Based on the announcement, the government devised detailed guidelines in which it was mentioned that SHGs who provided details of Aadhaar card and other KYC documents would only be eligible for loan waiver; moreover, for eligible SHGs the cooperative societies were directed not to collect interests for the loan from April 1, this year.