The Kerala government has approached the Centre to put in place a moratorium on repayment of loans till December 31 so as to provide relief to individuals in the unorganised sector, Micro, Small & Medium Enterprises, agriculture and others adversely affected by Covid-19 pandemic and the subsequent lockdown.
Kerala has sought a moratorium of loans without accrual of interest and penal interest during the moratorium period. Kerala Finance Minister KN Balagopal, in a letter to Union Finance Minister Niramala Sitharaman, said the impact of the second-wave induced lockdown has adversely affected the economic and social well-being of all sectors of the society. He said the state government has taken all steps to ameliorate the hardships faced by the people, especially the vulnerable sections.
“…it is felt that the burden of repayment of the loans taken by individuals, especially those in the unorganised sector, MSMEs and agriculturalists is particularly onerous at this time, and these sections need some relief by way of moratorium on the repayment of loans at least till December 31, 2021,” Balagopal said in a letter written to Union Finance Minister Niramala Sitharaman.