Kerala floods one month after: Beneficiaries cry foul over parameters of loan scheme

ALAPPUZHA: Lekha Shaji, a member of Santhideepam Ayalkoottam of ward III of the flood-ravaged Kainakari panchayat of Kuttanad, is feeling desperate.  

“The state government declared an interest-free loan of Rs 1 lakh will be allotted to all families ravaged by the flood,” she told Express.

“Based on the direction, we approached the Community Development Society (CDS) in the panchayat. They said a maximum of Rs 10 lakh will be allotted to the 17-member group and an interest of 9 per cent will be levied. We have already taken Rs 7.5 lakh from the bank as loan and a few installments are pending. The loan will be allowed only after deducting the balance amount of the existing loan. So, we will get a maximum of Rs 50,000 per head. What is the utility of the declaration of the government? This is a betrayal of the poor. My home was under water and we are jobless. The declaration is an eyewash,” Lekha said.

Lekha’s words present the state of affair of the allotment of interest-free loan to flood-ravaged families in the state.

“Kudumbashree is allotting loan only through Ayalkoottam members. A maximum of Rs 10 lakh will be allotted to a 20-member group. The interest will be collected from beneficiaries. However, the government is saying it will be repaid to beneficiaries after six months. While allotting the loan, the balance amount and interest of the previous loan should be deducted. What is the benefit of the loan to ordinary people of the state and how can they rebuild their family?” said B K Vinod, member of Kainakari panchayat.

“The parameters stipulated for the distribution of  Resurgent Kerala Loan Scheme should be modified for the benefit of flood-affected families. But the state government and State Level Bankers Committee stick to the directions and decisions formulated before the flood and it is not of help to flood-ravaged people,” Vinod said.

Kudumbasree Mission executive director S Harikishore said the direction was issued based on the directions of the RBI and Nabard.

“The loan will be given only to self-help groups. A maximum of Rs 10 lakh will be allotted to a 20-member group. The loan will be allotted only after the valuation of assets damaged in the flood and the repaying capacity of beneficiaries. If the need arises, we will approach the SLBC and RBI to simplify the parameters,” he said.

Heavy rain likely on September 25: IMD

THIRUVANANTHAPURAM: The India Meteorological Department (IMD) has warned that parts of the state are likely to receive heavy rainfall on Tuesday.

In fact, parts of the state, including Thiruvananthapuram, have been receiving low amounts of rainfall this week. According to the IMD, heavy rainfall is most likely to occur at one or two places in the state on Tuesday.

Seven to 11 cm of rainfall within 24 hours is classified as heavy rainfall in IMD terminology. For the most part, the southwest monsoon has been weak over Kerala.

Idukki has received 5 cm of rain and Konni in Pathanamthitta district and Peermade in Idukki district, 2 cm each.