CO-OPERATIVE BANK AND GROUP - ONE TIME SETTLEMENT SCHEME OF BANK LOAN ARREARS

From 1st February to 31st March

Trivandrum : One-time settlement scheme announced to waive off loan arrears in primary cooperative societies and banks under Registrar of Co-operative Societies. Minister V. N Vasavan said that the duration of the Nava Kerala One Time Settlement Scheme will be from February 1st to March 31st. Loans of dead and terminally ill persons will be given special concessions to settle including such loans in case of death of the income earner due to Covid-19. To provide relief to the financial hardships caused by the Covid lock -down restrictions, Nava Kerala has conducted an arrears relief program from August 16, 2021 to September 30, 2022. Many people were not able to avail the benefit then. That is why the plan is being implemented again. According to this scheme, after settlement of the loan, they will be sanctioned a new loan by following the procedure. The final decision rests with the group governing body. Regular loan repayments will also be availed in One - time settlement. This will be available to the borrowers who pay the amount correctly from April 1, 2022.

Excluded from the scheme

The Minister also informed that Kerala Bank, House Co-operative Societies and Co-operative Agricultural Rural Development Banks will not be included in the one-time settlement scheme.

                           INPUTS BY – ANJANA Y U ON 08 FEBRUARY 2023