Assam Microfinance Incentive and Relief Scheme 2021

The Assam Microfinance Incentive and Relief Scheme, 2021 was launched by the Assam Chief Minister Himanta Biswa Sharma in November 2021. The scheme aims to benefit 24 lakh women in the state.

What are the key features of the scheme?

  • Under the scheme, around 24 lakh women in the State are to receive one – time incentive between Rs 16,000 and Rs 25,000 each.
  • In the first phase, the incentive was provided to borrowers who have been repaying their debt regularly.
  • In the second phase, the scheme will provide incentive to women whose payments are overdue by less than 90 days. It also includes women whose loan accounts are not classified as non – performing assets.
  • In the third phase, the scheme will cover borrowers whose loan accounts have become non – performing assets. Partial or full relief will be provided based on evaluation.

How is the State Government of Assam implementing the scheme?

  • The Assam cabinet allocated Rs 1,800 crores to waive microfinance loans availed by poor women.
  • The Assam Government had signed an agreement with 38 microfinance institutions and banks for Rs 12,000 crores to implement the scheme.

Why was the scheme launched?

  • According to the State Government of Assam, around 26 lakh borrowers have taken loan for Rs 12,500 crores from different Microfinance Institutions in rural areas. However, the borrowers are facing issues of repayment due to COVID.
  • During the assembly election campaign, the BJP – led coalition had promised to waive the microfinance loans of women. However, after coming to power, the government made statements that its was a “political promise” and not a “government promise”. This led to severe criticisms. The scheme is seen as a measure to counter those criticisms.

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