Chennai, Dec 15 (KNN) Tamil Nadu Chief Minister M K Stalin on Thursday insisted the central government to direct banks to provide a three-month moratorium on the repayment of loans to borrowers including MSMEs and traders in cyclone Michaung affected northern districts of Tamil Nadu.

In a letter to the Union Finance Minister Nirmala Sitharaman, he shed light on the situation and the impact on livelihood of about 37 lakh families in Chennai, Chengelpet, Kancheepuram and Tiruvallur districts which has seen significant disruption and damage to properties.

Although the state government has been able to restore normalcy in their daily lives, the impact on their livelihood still lingers for many. 

“Small businessmen, traders and MSME units impacted by the floods are yet to return to their regular economic activities,” the CM noted.

Many of these families and business entities have availed loans for various purposes and they would be finding it impossible to repay their dues in these difficult circumstances.

There is an urgent need to mitigate the burden of immediate debt servicing by relaxing repayment schedules till they come out of this crisis, Stalin urged.

The CM requested the FM to direct all commercial banks, (including regional rural banks, small finance banks and local area banks), co-operative banks, financial institutions, Non-banking Financial Companies (including housing finance firms) to provide moratorium.

It is for 3 months from December 1, 2023 to February 29, 2024 on payment of all instalments in respect of all term loans availed by families and business units in these four districts. Such loans include agricultural term loans, retail and crop loans as well.

(KNN Bureau)