The BJP-led Assam government on Tuesday signed an MoU with 38 microfinance institutions and banks to provide incentive and relief to women borrowers, a pre-poll commitment of the ruling party.

Officials said the state government now has a roadmap on extending relief to about 14 lakh borrowers. The total loan size is of about Rs 12,000 crore but has been brought down to about Rs 7,200 crore after exhaustive discussions with the lending organisations.

The MoU for the implementation of Assam Micro Finance Incentive and Relief Scheme (AMFIRS), 2021 will remain in force till March 31, 2023.

The borrowers have been divided into three categories.

⚫ Those paying their EMIs regularly. They will be getting am incentive of Rs 25,000 each

⚫ Those paying regularly but have an overdue after hearing of waiver. The government will provide them a relief amount not exceeding Rs 25,000 each.

⚫ Those whose loans have turned into NPAs. They will have to apply for relief.

They will get partial or full waiver based on detailed evaluation.

Though the BJP and its allies had promised complete waiver of loan to poor women borrowers during poll rallies, it formed a committee after retaining power in May under cabinet minister Ashok Singhal to examine the issue in detail and suggest a roadmap.

The loan waiver/relief promise many believe was one of the game-changers for the ruling coalition. The havoc wreaked by Covid had impacted lot of businesses and women borrowers were one of the most affected.

Reports of recovery agents harassing borrowers appeared frequently. Sensing an opportunity, the ruling BJP made loan waiver one of the key poll planks during the last leg of the campaign. And it paid handsome dividends. However, the government decision to categorise the borrowers has not gone down well with a section.

Assam chief minister Himanta Biswa Sarma asserted they are trying to help as many poor women as possible and those trying to pay regularly. Incentive and relief are not for those who are well-off, he said on Tuesday, adding from now on loan will be extended to those who can pay.

“A person, say a tea garden worker, will not be extended loan. They will be given government welfare schemes to improve their economic condition.

“Lending institutions have to make detailed assessment before extending loan. A borrower can also borrow an amount not exceeding Rs 1.25 lakh from three banks. The incentive/relief scheme is designed to support economic activities of low income and poor households in the state,” Sarma said.