The Karnataka Congress government has approved an interest waiver on certain loans disbursed through the state’s Minority Development Corporation as part of a One-Time Settlement (OTS) scheme, officials said.
The decision was cleared by the state cabinet and applies to loans extended between the financial years 2013–14 and 2018–19. Under the scheme, eligible borrowers will receive a waiver on the interest component of their loans, enabling them to settle outstanding dues by repaying the principal amount.
According to official data, loans amounting to ₹981 crore were disbursed during the specified period. Outstanding dues currently stand at approximately ₹714 crore. The OTS scheme is aimed at facilitating recovery of these dues while reducing the repayment burden on beneficiaries.
Officials said the initiative is intended to improve loan recovery rates within minority welfare financing programmes and to provide financial relief to economically weaker borrowers who have struggled to service accumulated interest liabilities over the years.
Further implementation guidelines, including eligibility criteria and settlement timelines, are expected to be issued by the Minority Development Corporation following the cabinet’s approval.
Source: OpIndia
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