Relief for Wayanad! Kerala Bank to write off loans availed by individuals at Chooralmala branch

Wayanad: Owing to the exceptional situation in landslide-ravaged in Wayanad, the loans availed from the Kerala Bank's Chooralmala branch will be written off. This comes as a relief for those affected by the massive landslides and lost their way of life. Though the volume of loans disbursed from the Kerala Bank is still unclear, the loans availed by the individuals in the area is in the tune of Rs 29 crores. This exemplary act could also act as an indicator to another banks on how to handle the situation.

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Following the devastating landslides, Kerala Bank earlier contributed Rs 50 lakh to the Chief Minister's Distress Relief Fund (CMDRF) to help relief and rehabilitation activities in Wayanad. The borrowers from the branches of Kerala Bank in other areas like Mundakkai are also hopeful of getting a similar relief, although there is no confirmation regarding the same.

Earlier on Monday (Aug 12), banking expert Adi Keshavan has urged for a moratorium on loans taken by affected individuals. He pointed out that as per the Reserve Bank of India's guidelines, banks can restructure loans in areas affected by natural disasters. Speaking on Asianet News' 'En Naad Wayanad' Livethon, Keshavan emphasized the need for a collective decision by the State Level Bankers' Committee (SLBC) to declare a one-year moratorium on all loans, including personal loans and gold loans.

Keshavan also highlighted the Reserve Bank of India's clarification that zonal managers can take decisions in critical situations arising out of natural disasters.

Meanwhile, the State Level Bankers' Committee will soon decide on the loan moratorium for landslide disaster victims, said KS Pradeep, General Manager of SLBC. He also said that a direction will be given to avoid EMI collection from disaster victims and an investigation will be conducted into the incident. 

Speaking during 'Livethon' on Asianet News, Pradeep assured that directions will be given to avoid collecting EMIs from disaster-affected borrowers and an investigation into the matter will be conducted. He acknowledged that EMIs might have been collected based on earlier directives and stated that it was not done intentionally.

Pradeep also announced that he would discuss the matter with the Chairman of Kerala Gramin Bank and instruct them to avoid such collections. He assured that banks would do everything possible to help within their capacity and officials are gathering information from relief camps.

Also Read: Asianet News LIVETHON: Banking expert calls for moratorium on loans taken by landslide-affected individuals

• kerala bank
• chooralmala
• write off
• loans
• wayanad
• relief