Will Loan Write-Offs for Landslide Victims in Wayanad Solve Financial Struggles?
Will Loan Write-Offs for Landslide Victims in Wayanad Solve Financial Struggles?
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Thiruvananthapuram: In response to complaints that banks have been deducting EMIs from the accounts of Wayanad landslide victims, the district collector has directed the banks to refund the debited amounts. After the disaster, each family sheltered in relief camps received Rs 10,000 in immediate relief from the state government. However, EMIs were withdrawn from these accounts as soon as the funds were deposited. Wayanad Collector Meghashree D R has clarified that these immediate relief funds were intended for urgent needs, not for EMI payments.

Kerala Chief Minister Pinarayi Vijayan has called on banks to completely write off the loans of individuals affected by the recent landslides in Wayanad. Speaking at a State Level Bankers' Committee (SLBC) meeting on Monday, Vijayan argued that eliminating these loans would not impose a significant burden on the banks and is the only fair solution for the victims.

Vijayan criticized the idea of merely extending loan repayment periods or reducing interest rates, stating that such measures are inadequate for the landslide survivors. He highlighted the dire circumstances of many victims, noting that some have died and others have lost access to their land, rendering any loan repayment untenable.

"The only feasible action is to write off all the loans for people in these devastated areas," Vijayan asserted.

His appeal comes amid growing protests against Kerala Gramin Bank, which is reportedly still collecting monthly installments from survivors. On Monday, demonstrators from various political parties gathered in front of the bank's Kalpetta branch, highlighting the issue.

The landslides, which struck Wayanad's Mundakkai and Chooralamala regions on July 30, caused extensive damage, killing over 200 people and injuring many others.

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