Guwahati, July 16: Assam Budget 2021-2022, presented at the Assembly on Friday, paved wave for fulfilling BJP’s poll plank last State elections in March-April of relief to micro borrowers.

The budget has earmarked a sum of Rs 7,500 Crore for the waiver scheme named ‘Assam Microfinance Incentive and Relief Scheme’ (AMFIRS).

Assam finance minister, Ajanta Neog, the first woman to present budget in the state, also presented Assam Micro Finance Institutions (Regulations of Money Lending) Act, 2020.

Further, in pursuance of the Cabinet decision taken on May 11, this year, that constituted Micro Finance Institutions Committee, Neog asked Minister Ashok Singhal, who is also the Chairman of the committee, to prepare a road map for alleviating the miseries of the borrowers of this sector.

“The Committee recommended some incentives for the borrowers to mitigate the problems faced by them,” Neog said.

Accordingly, the Cabinet approved the scheme namely “Assam Microfinance Incentive and Relief Scheme (AMFIRS), 2021” to provide relief to the micro finance borrowers.

Ahead of Assam Assembly elections 2021, Himanta Biswa Sarma, then the finance minister, had announced of waiving off micro finance loans of poor women borrowers if it comes to power. On forming government on May 10 as Assam CM, Sarma said the prompt payee, and those who haven’t paid instalments after his promise of waiver will get money assistances in order to maintain their CIBIL score, a credit history on loanee’s credibility, and only the defaulters’ loans will be waived off at a cost of bad CIBIL score.

As announced, the scheme includes categorisation of the clients in three groups — proposed Rs 25,000 money assistance to regularly repaying clients, Rs 25,000 and clearing off of overdues for those who didn’t pay for 1-89 days, and complete waive off of the “stressed and destitute” whose loans have been rendered Non Performing Assets (NPA).

For the third category, applicants need to apply through a format for consideration under the scheme. As enshrined under the scheme, the lenders of such micro-finance are now completely bound by the guidelines of Fair Practices Code”

Neog stated, “As such, following this, a benefit of more than Rs. 4000 Crore will start accruing to the borrowers from the lenders directly. This will benefit lakhs of such borrowers almost immediately. Sir, the total requirement toward this waiver / relief is around Rs. 12,000 Crore. Once the lending institutions extend benefit to the borrowers under the Fair Practice Code, the requirement of funds would come down from Rs. 12,000 Crore to about Rs. 7,500 Crore. I am earmarking the sum accordingly.”

Neog, while presenting state budget for 2021-22, said that the Government has taken an initiative under Assam Small Financial Grant and Relief Scheme to provide relief to affected womenfolk who had taken loans from various small finance institutions.