Lucknow, Nov 7: The Uttar Pradesh government today decided to waive off loans amounting to Rs 120 crore taken by 7.5 lakh poor under the self-employment schemes sponsored by state Scheduled Caste Finance and Development Corporation.
During a state cabinet meeting under the chairmanship of Chief Minister Mayawati, it was decided to waive off the principal amount as well as the interest borrowed under the old margin money loans more than ten years ago which had turned into non-performing assets.
Due to tough loan policies of the banks, necessary amounts were not provided for the self-employment schemes for the unemployed and poor people of the Scheduled castes. This resulted in most of the units turning into non-profitable assets which led to financial crisis and the borrowers could neither pay their loans nor had they any source of income.
Keeping this in mind, the state government has decided to waive off the loans up to a maximum of Rs 10,000 taken more than ten years ago.