Microfinance Industry signs MOU with Government of Assam

Himanta Biswa Sarma

MFIN, the Association for microfinance entities announced the signing of an MOU in Guwahati between the Government of Assam (GOA) and 37 microfinance lenders for joint implementation of the Assam Microfinance Incentive and Relief Scheme (AMFIRS), 2021 of the Government of Assam.

AMFIRS provides financial relief from the Government to the microfinance borrowers in Assam to help them continue maintaining good credit discipline in COVID times. The scheme will provide incentives to clients who are regular in repayments and help overdue clients become regular – it is expected to benefit more than 20 lakh women borrowers in the State.

Also Read: MFIN and KPMG unveil special report titled ‘Rejuvenating Microfinance in India – Embracing Digital’

The MOU lays down duties and responsibilities of the two parties – GOA and lenders including 6 universal banks, 25 NBFC MFIs, 2 NBFCs, and 4 Small Finance Banks – for ensuring successful implementation of the scheme.

Dr Alok Misra, CEO & Director, MFIN said, “The signing of the MOU after several rounds of discussions is a significant development, demonstrating the intent of the Government of Assam and the microfinance institutions in working unanimously towards the welfare of microfinance borrowers in the State. We are confident that the implementation of the scheme will ensure continuity of microfinance for supporting economic activities of low-income households in the State while providing immediate relief to eligible customers for tiding over current stress in the microfinance sector further accentuated by Covid-19 pandemic. The Government’s focus on maintaining credit discipline and responsible finance is evident. “

On June 18, Chief Minister of Assam DR Himanta Biswa Sarma in a press conference shared the broad contours of the scheme for Microfinance customers.

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