CHENNAI: Finance Minister K Anbazhagan on Tuesday announced that penal interest and other charges on the non-farm loans would be waived while the rate of simple interest on the loans would be reduced from 12 per cent to six per cent. The concessions would come around Rs.251.21 crore and would benefit 1.32 lakh persons.
The special loan settlement scheme evolved by the government would be applicable to those non-farm loans for which the last instalment was not paid by March 31, 2007. Those who availed the loans should sign an agreement with their concerned banks on or before October 31, 2009 and they would be allowed to repay their loans within three months. On signing the agreement, 25 per cent of the due should be paid and the rest of the amount should be paid in not more than three instalments.
For those who come forward to repay the loans, the interest rate would be reduced from 12 per cent to six per cent from the date of availing the loan. Besides, penal interest and other charges would be completely waived.
The State government would compensate four per cent of the loss of interest to the bank while the banks would bear the rest, the Minister said making a suo motu statement in the State Assembly. The DMK government on assuming the office, waived cooperative loans of farmers to the tune of Rs.7,000 crore while the non-farm loans were not waived.
As the non-farm loans were availed on the basis of collateral security, the entire loan could not be waived. To help those who had availed these loans to continue their business, a new scheme was announced on December 27, 2006. As per this scheme, those who repaid the loans, the interest rate would be reduced from 18 per cent to 12 per cent and this scheme was in force till June 30, 2009.
Till March 31, 2009, loans to the tune of Rs.509.99 crore was collected and concession on interest was given to the tune of Rs.127.93 and still, 709.51 crore is yet to the repaid.