KOCHI: Although the state government has announced plans to convene a special meeting of the State Level Bankers Committee (SLBC) to address loan repayment issues for survivors of the July 30 landslides in Wayanad, the survivors are calling for stronger government intervention.
They are urging the government to write off their loans rather than merely offering a moratorium. They argue that a moratorium provides little relief, as the disaster has severely impacted their ability to repay, with many having lost agricultural land and facing an uncertain future.
Survivors of the 2019 landslides in Puthumala and Kavalappara cite that moratoriums only add to the burden of additional interest payments once the period ends, with banks even initiating property recovery for loans taken before the disaster.
The story of Usha, a survivor from Kavalappara, highlights the dire situation many face. Despite losing the land she had pledged for a loan, banks are demanding repayment. The 65-year-old homemaker now resides in a house built with the Rs 10 lakh provided by the state government for rehabilitation.
“I borrowed Rs 25,000 from Kerala Gramin Bank by pledging one acre of my land, intending to repay the loan with the areca nut yield. But the land was devastated in the landslide. Now, the bank authorities are demanding repayment, threatening to seize this house and property if I don’t pay,” she said. She lost her son Vinoy in the tragedy.
Another survivor, Sabitha from Chooralmala, took a loan by pledging her property in Puthumala before the 2019 landslide. Although a moratorium was declared, she paid off the interest and loan amount afterward. Now, she faces a liability of around Rs 6.5 lakh for a loan taken to run a small business.
“The disaster has severely impacted our livelihoods, making it impossible to repay the amount or even secure an extension on the payment period. The government needs to take this issue seriously and take action ,” she said.
Sources indicate that only the Union Finance Ministry can make the final decision on loan write-offs. “The indebtedness of the affected and their families, to Banks and other financial institutions, both public and private, must be assessed and reckoned for including in the relief and rehabilitation package scheme and accordingly distributed to the lending institutions for wiping off the debts”,,” said K S Krishna, state president of the All India Bank Employees Association.
Meanwhile, the state government has directed private finance firms and moneylenders to refrain from pressuring survivors for EMI payments and loan repayments.
Kerala Bank to write off loans of landslide victims
T’Puram: The Kerala Bank has announced that it will be writing off the loan liabilities of the landslide victims in Wayanad. A statement issued by the bank said that the liabilities of those who died and those who lost properties in the disaster will be included. The decision was taken by the director board of the bank. A source said the bank is yet to ascertain the exact number of loans and amount that would be written off. Details are being collected from the bank’s Chooralmala branch. The bank had donated Rs 50 lakh to the Chief Minister’s Distress Relief Fund to help the disaster victims. The staffers also voluntarily donated five days’ salary to the fund.
