MFIs, Assam government sign MoU for Assam Microfinance Incentive and Relief scheme

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• Aug 25, 2021 | moderator

Guwahati: The Assam government has signed a memorandum of understanding (MoU) for microfinance lenders. The agreement looks out for the joint implementation of the Assam Microfinance Incentive and Relief Scheme (AMFIRS), 2021.

Assam Chief minister Himanta Biswa Sarma on June 18 stated the special support for microfinance clients and gave the comprehensive outlines of the scheme.

Assam CM Sarma also said that the Assam Micro Finance Incentive and Relief Scheme (AMFIRS), 2021, would include a Rs 12,000 crore credit portfolio, which the state government would be obligated to expend around Rs 7,200 crore.

According to a statement issued by the Chief Minister’s Public Relations Cell, Assam, CM Sarma notified that there were 14 lakh microfinance borrowers in Assam upto June 2021.

 “Assam Micro Finance Incentive and Relief Scheme has been devised with an objective to balance long-term view of ensuring continuity of microfinance for supporting economic activities of low income and poor households in the state and providing relief to eligible customers for tiding over current stress in the microfinance sector due to various operational reasons,” the chief minister stated.

“AMFIRS is aimed at giving financial support from the government to the microfinance borrowers in the state to support them continue maintaining good balance discipline in Covid times,” MicroFinance Institutions Network added.

Discoursing on the progress, Alok Misra, CEO and director, MFIN, stated, “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.”

MFIN is convinced that implementing the project will guarantee the progression of microfinance for promoting the financial actions of low-income families in Assam. 

The scheme will be providing instant support to eligible consumers for tiding over prevailing stress in the microfinance sector further accentuated by the Covid-19 pandemic.