PUNJAB CABINET OKAYS WAIVER OF LOANS UP TO RS 50,000 FROM SC/BC FINANCE CORPORATIONS

Chandigarh, March 22: Fulfilling yet another of its poll promise, the Punjab government, led by Captain Amarinder Singh, is all set to waive off loans, up to Rs. 50000 each, taken from the Punjab Scheduled Castes Land Development and Finance Corporation (PSCLDFC) and Punjab Backward Classes Land Development and Finance Corporation (PBCLDFC).

The cabinet on Thursday paved the way for the waiver, which will benefit 15,890 people who had taken loans up to March 31, 2017, including those who had defaulted on their payments, an official spokesperson said. A total amount of Rs 52 crore will be waived off under the scheme.

In the case of Punjab Scheduled Castes Land Development and Finance Corporation, there are 14,260 beneficiaries eligible for loan waiver, with a total financial liability of Rs.45.41 crore. The total number of eligible beneficiaries in the case of Punjab Backward Classes Land Development and Finance Corporation is 1630 and the financial liability involved is Rs.6.59 crore.

Under the scheme, the beneficiaries would be issued no dues certificates only after the repay the balance amount, with interest, minus Rs. 50000 which the government has decided to waive off. The cut-off date would be March 31, 2017 for calculation of interest/penal interest.

The loanees who have already filed a civil case in the court against the corporation would not be covered under this scheme, until they withdraw the cases unconditionally. If any dispute arises for waiving off loan under this scheme, the Executive Director of the Corporation would be the competent authority to take decision.

Rules and regulations of the corporation would be treated as amended to the extent of conditions of this scheme. If any legal dispute arises under the scheme, then the legal jurisdiction would be Chandigarh courts only.

Pertinently, the Punjab Scheduled Castes Land Development & Finance Corporation advances loans to poor Scheduled Castes people at nominal rate of interest and Punjab Backward Classes Land Development and Finance Corporation advances to poor backward classes people. The loan recovery of the PSCLDFC and PBCLDFC is 67% and 85% respectively.