Another survivor, Sabitha from Chooralmala, took a loan before the 2019 landslide by mortgaging her property in Puthumala. Though a moratorium was imposed, she later repaid the interest and loan amount. Now she is in debt of around Rs 6.5 lakh for a loan she took to run a small business.
“The disaster has severely affected our livelihoods and it is impossible to repay the amount or even get an extension of the payment deadline. The government must take this issue seriously and take action,” she said.
According to sources, only the Union Finance Ministry can take the final decision on loan waivers. “The debts of the affected people and their families to banks and other public and private financial institutions need to be assessed and included in the relief and rehabilitation package and distributed accordingly to the lending institutions to clear the debts,” said KS Krishna, national president of All India Bank Employees Association.
Meanwhile, the state government has directed private finance companies and money lenders not to put pressure on the survivors to pay EMI instalments and loans.
Kerala Bank waives loans of landslide victims
T’Puram: Kerala Bank has announced that it will write off the loan liabilities of the landslide victims in Wayanad. A statement from the bank said that the liabilities of those who died and lost properties in the disaster will be included. The decision was taken by the bank’s board of directors. According to a source, the bank is yet to ascertain the exact number of loans and the amount that will be written off. Details will be obtained from the bank’s Chooralmala branch. The bank has donated Rs 50 lakh to the Chief Minister’s Distress Relief Fund to help the disaster victims. The employees also voluntarily donated five days’ salary to the fund.
