The Indian government reportedly is planning a debt waiver program for “small distressed borrowers” under the country’s insolvency and bankruptcy code. While the criteria under which a borrower would qualify for the program remain under discussion, potential parameters include: a gross annual income of less than INR 60,000 (USD 837), assets of less than INR 20,000 (USD 278), and debt of less than INR 35,000 (USD 486). It is unclear whether or how borrowers would be required to claim hardship in order to secure a waiver. Those receiving the waiver, however, would be barred from receiving another waiver for five years.
Corporate Affairs Secretary Injeti Srinivas was quoted as saying, “We had discussions with microfinance industry and their concerns are being duly factored in. The idea is not to destroy the microfinance industry. The idea is to give waiver for small distressed borrowers from debt obligations based on a criteria. The criteria has been discussed at length with the microfinance industry.”
By Eugene DeCosse, Research Associate
Sources and Additional Resources
Livemint article
https://www.livemint.com/news/india/govt-plans-debt-waiver-for-small-distressed-borrowers-under-insolvency-law-1566113815629.html
Did you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/.
Similar Posts:
- SPECIAL REPORT: European Microfinance Week 2023 Opens With Action Group Meetings, Including Investors Sharing Strategies for Measuring Social Performance #EMW2023
- MICROCAPITAL BRIEF: Money Transfer Firms Suspend Fees for Payments to Libya, Morocco in Response to Disasters
- MICROCAPITAL BRIEF: SBFC Raises $18m from Amansa for On-lending to Small Businesses, Households in India
- MICROCAPITAL BRIEF: First Consult, Mastercard Foundation, Seek to Create 400k Jobs in Ethiopia via Access to Finance, Wraparound Support for MSMEs, Entrepreneurs
- MICROFINANCE PAPER WRAP-UP: “2023 Microfinance Index Report,” Published by 60 Decibels
