TN govt issues GO for Rs 6000 crore coop loan waiver

Chennai: The Tamil Nadu government on Monday issued an order for waiving cooperative gold loans to the tune of approximately Rs 6,000 crore, to implement an announcement made by Chief Minister M K Stalin earlier.

The chief minister had announced waiver of gold loans up to 5 sovereigns under certain conditions and had estimated the waiver value to around Rs 6,000 crore.

The GO issued by the Cooperative, Food and Consumer Protection department dated November 1, 2021 said the move will benefit 16 lakh persons who had obtained the gold loans.

It also announced a series of guidelines on the waiver and directed stringent action against any frauds committed by individuals in obtaining loans.

The loan waiver will apply to a family on the basis of its ration card and up to 5 sovereigns of gold till March 31, 2021.

The waiver amount will be provided to the cooperatives by the state government, it added.