THIRUVANANTHAPURAM: The state government’s decision to provide one-year moratorium on agriculture, dairy and education loans, but exclude housing loan, has drawn flak from the flood-affected people.They point out loans taken under the House Building Advance (HBA) scheme will not even get insurance coverage following a damage due to a natural disaster, and a one-year moratorium will help them greatly.
Earlier in July, the Cabinet had decided to give moratorium on all loans including the housing loans. The government had even recommended the State Level Bankers Committee (SLBC) to give necessary instructions to all banks to comply with the Cabinet decision. The Cabinet had recommended a one-year moratorium on repayment of normal loans and six months for education loans after the deluge. As per the decision, the moratorium period was to be valid from July 31.
However, in the Cabinet meeting on Thursday, the government decided to give moratorium only on agriculture, dairy and education loans and excluded housing loans. This has many flood-affected people with existing housing loans worried. “I don’t know what to do. The banks are still deducting `20,000 from my account every month even after the government’s recommendation in July. My house suffered huge damage in the flood and I don’t even have money for the maintenance,” said Manoj Kumar (name changed), a government employee from Thrissur.
“The government should understand that along with farm lands, houses have been destroyed in the flood. We built our houses through loans. Now, neither have a relief for loan repayment nor we have any money to repair the houses,” he said. As per Section 13 of the National Disaster Management Act, 2005, the loan repayment moratorium should be granted to everyone living in the calamity-affected places. It does not restrict moratorium to certain sectors.
Several people like Manoj who availed of home loans are at receiving end and many of them have already got loan recovery notices. A section of affected people has decided to submit a memorandum to the government to reconsider the decision. Meanwhile, M V Jayarajan, Private Secretary to Chief Minister Pinarayi Vijayan, told Express the government will look into the matter seriously. “So far, we have given moratorium on three sectors. Earlier, we had given recommendations to the banks. But I am not sure whether it is implemented or not. However, the government will check and come with a solution soon,” said Jayarajan.