TheTamil Nadugovernment issued an order giving effect to waiver of loans taken from on gold up to five sovereigns or less.
The move will cost the exchequer about 6,000 crore. The department of co-operation, food and Consumer protection issued the GO stating that CMM K Stalinhad, on September 13, announced that the gold loans taken from cooperative banks till March 31, 2021, will be waived off based on certain criteria to benefit the needy.
The DMK had promised to waive off the loans in its election manifesto earlier this year. The government also issued guidelines to identify eligible and ineligible beneficiaries to avail of the waiver.
Among others, if a ration card holder and members have one or more gold loans (gross weight up to 40g) in one or more cooperative banks, they will be eligible for the waiver.