 "Rains, Chennai, Tamil Nadu, Flood")
In a move to help flood-affected victims in Tamil Nadu, banks have come out with series of relief measures.
The decision was taken at a meeting, which was chaired by Arun Jaitley, Union Finance Minister, who visited Chennai on Saturday. He was here to oversee the efforts of banks and insurance companies in mitigating the problems arising out of the floods in and around Chennai.
Agricultural loans, including short-term production credit (crop loans), will be converted as term loans that will be repayable in 2-5 years. A moratorium of one year and fresh crop loans will also be extended to the same borrowers. The banks have also decided to reschedule installments and give out fresh loans to the same farmers whose assets need replacement or repairing.
Bringing in relief to MSMEs and MUDRA loans, lenders have decided to reschedule installments with a moratorium period of two years.
Fresh MUDRA loans to more than 10 lakh people will be given. A portion of working capital damaged by floods will be converted to term loan that will be repayable with a moratorium period of two years. There will be a restoration of the working capital to the original limit or enhancement where so required.
The banks have decided to sanction consumption loans up to Rs 1 lakh for purchase of household articles damaged by the floods at concessional rate.
On housing loans, there will be a rescheduling of existing loans with a moratorium of 1 year and Rs 100 crore will be made available from Urban Housing Fund of National Housing Bank.
As far as vehicle loans concerned, it will be rescheduled with a moratorium of six months and top up loans with interest to be as the base rate. Education loans are set to get a moratorium of six months.
Insurance firms, both life and non-life, have decided to expedite the claims. They have assured to settle the claims within one month and resolve disputes, if any, in the next one month.
Four public sector general insurance companies have conducted mega camps at nine places and have received 11,811 claims amounting to Rs 1,990 crore out of which 1,975 have been paid with an amount of Rs 26.80 lakh.
Life Insurance Corporation of India (LIC) has paid 11 claims for an amount of Rs 56 lakh and 176 express claim settlement centers are being operated by LIC.
Insurance companies have also looked to simplify claims procedure with requirement for some documents/bills being waived.
LIC has shared information with banks on those who have lost their lives in this calamity and are covered under Prime Minister Jeevan Jyoti Bima Yojana (PMJJBY), for expediting the insurance compensations.
More than 30 lakh families have been affected by the flood. Most of them will be extended loans or insurance compensation by banks, financial institutions and insurance companies in order to give them immediate relief for better living of life, the State Level Bankers' Coordination Committee (SLBCC) said in a release.
