Assam Signs MoUs With Microfinance Firms To Waive Loans Taken By The Poor

The Assam government has signed memorandum of understanding or MoUs with microfinance institutions (MFIs) to help women borrowers from poor families, the state government said on Tuesday.

A total of 38 MFIs and banks signed the MoU with the state government, which will remain in force till March 31, 2023, the government said at the launch of the programme attended by Chief Minister Himanta Biswa Sarma and state ministers.

Microfinance Institutions Network, North East Small Finance Bank, Association of Small Finance Bank of India and Nightingale Finvest are among some of the firms that have signed up.

Mr Sarma said the Assam government in its first cabinet meeting formed a committee under the chairmanship of Housing and Urban Affairs Minister Ashok Singhal to fulfil its election promise of waiving microfinance loan for women from poor families who are not able to return their loans.

"Accordingly, Assam Micro Finance Incentive and Relief Scheme has been devised with an objective to balance long-term view of ensuring continuity of microfinance for supporting economic activities of low-income and poor households in the state and providing relief to eligible customers for tiding over current stress in the microfinance sector due to various operational reasons," the Chief Minister said.