Kerala CM urges banks to write off loans of landslide victims, survivors of Wayanad

He said waiving loans would not impose any unbearable burden upon the banks and so it should be written off completely.

Thiruvananthapuram: The Kerala government on Monday expressed strong displeasure over banks deducting monthly installments of loans from the accounts of landslide victims and survivors in Wayanad, and demanded that these loans be written off completely.

Waiving loans would not impose any unbearable burden upon the banks, and so it should be written off completely, Chief Minister Pinarayi Vijayan said here.

While addressing a meeting of the State Level Bankers' Committee (SLBC) here, the CM said relaxation in interest amounts or extension of time for remitting monthly installments would not at all be a solution in the landslide-hit regions.

"Many of those who had taken the loans are deceased, and their land has become unusable due to the disaster," he pointed out.

"The only thing we can do is write off the entire loans taken by people in these affected areas," Vijayan said.

He expressed the government's strong displeasure over banks continuing to deduct monthly installments from the accounts of survivors and urged the SLBC (State Level Bankers' Committee) to take a favourable decision in this matter.

Recalling the horrors and impact of the July 30 tragedy, the CM said a large number of landslide victims or survivors had been engaged in farming activities in Wayanad, but the disaster has even altered the very geography of the agriculture lands there.

Citing reports, he said the affected places have become unusable, and no cultivation or settlement is possible in these areas.

"Most of the farmers in the areas have taken out loans. Those who took a loan to build a house had lost the house itself," the CM said, adding that they were not in a position now to repay the instalments.

The CM also pointed out that the banks, after writing off loans, usually expect the government to pay the waived amount.

"My suggestion is that you (banks) should not take such a stand on this issue," he said, urging the banks to bear the amount on their own.

Vijayan's reaction came amidst intense protests against the Kerala Gramin bank, which has allegedly deducted monthly installments from the accounts of some landslide survivors in Wayanad.

The meeting also decided that the banks that deducted loan EMI's from the affected people after the landslide on July 30 will be refunded. All sorts of loan recovery measures will be halted and standing instructions have been given to banks for automatic deductions from bank accounts of loanees to be withdrawn.

The decision came in the wake of strong protest against some banks for deducting the EMI even from the relief assistance of Rs 10,000 credited by the state government to their bank accounts. On Monday various political outfits also staged protest at the banks in Wayanad for deducting the EMIs.

SLBC meeting also decided to immediately restructure all loans so as to avoid any sorts of immediate loan repayment compulsion. Banks will also offer fresh loans at relaxed conditions to the landslide hit.

Major landslides hit the Mundakkai and Chooralamala regions of Wayanad on July 30, almost decimating both areas and killing over 200 people and injuring many.

With PTI inputs