Kerala Starts New Debt Relief Scheme

IAS Prelims 2023

The Kerala government approved a new debt relief scheme for low income and poor people who face the threat of revenue recovery proceedings after they fail to repay loans taken from various financial institutions under the government.

The scheme, expected to cause an additional burden of ₹40 crore to the exchequer, will benefit more than 10,000 persons.

The relief is for those who had taken loans from the State Housing Board, Scheduled Caste and Scheduled Tribe Backward Welfare Corporation, State Women’s Development Corporation, the Kerala State Handicapped Persons Welfare Corporation and Revenue Departments.

The principal amount, interest and penal interest on loans up to ₹5 lakh will be waived.

Besides, those who face recovery proceedings even after remitting over 150 per cent of the principal amount will be given concessions. The loan repayment period will also be rescheduled.