Battling Michaung aftermath, Tamil Nadu seeks loan moratorium for small businesses

Chennai (Tamil Nadu) [India], December 14 : Tamil Nadu Chief Minister MK Stalin has requested Union Finance Minister Nirmala Sitharaman to provide a moratorium on loan repayment for small businesses, particularly to those people who were affected by the Cyclone 'Michaung' that hit the state earlier this month.
In the letter to Minister Sitharaman, Chief Minister Stalin urged the central government to direct all commercial banks, co-operative banks, all financial institutions and non-banking financial companies to issue a moratorium for a period of three months -- December to February -- on payment of all instalments linked to agricultural term loans, retail and crop loans.
The chief minister said 37 lakh families across Chennai, Chengalpattu, Kanchipuram, and Thiruvallur districts have borne the brunt of severe rains that lashed the state before the cyclone made its landfall in neighbouring Andhra Pradesh.
"Although we have 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. Many of these families and business entities have availed loans for various purposes and would be finding it impossible to repay their dues," read CM Stalin's letter to the Union Finance minister.
The chief minister said some relaxation in the loan repayment schedules is needed till the affected civilians come out of the crisis.
For working capital facilities sanctioned in the form of cash credit or overdraft, the Tamil Nadu chief minister suggested that lending institutions be permitted to allow a deferment of three months on payment of interest on all such outstanding.