Loans of Flood-affected Borrowers in Vijayawada Rescheduled

Vijayawada: At the behest of the state government, banks have rescheduled the loans of borrowers residing in flood-affected areas of Vijayawada and its surroundings. In addition, banks have also offered a moratorium on the loans.

The loans have been rescheduled along with the moratorium following a meeting additional secretary (Finance) J. Nivas and NTR district collector Dr. G. Srijana had with bankers and insurance companies at the collectorate in Vijayawada on Thursday.

Nivas and Srijana requested victims affected by the recent floods in River Krishna and Budameru Rivulet to take advantage of loan rescheduling offered by banks. Those impacted by floods may submit applications to their respective bank branches as soon as possible to benefit from rescheduling of loans and moratorium.

As per the Reserve Bank of India (RBI) guidelines, bankers can facilitate rescheduling of loans by offering a one-year moratorium.

AP government officials further said people living on the ground floor can avail a loan of ₹50,000 while those of the first floor can borrow ₹25,000. There will be a moratorium of three months on these loans, with the repayment period being 36 months.

Nivas and Srijana said the rescheduling and moratorium have come about at the behest of Chief Minister N. Chandrababu Naidu following meetings between district coordination committees (DCCs) and the State Level Bankers Committee (SLBC).

The officials pointed out that around 48,000 vehicles, including auto-rickshaws and two wheelers, have been damaged in floods. The state government has already announced compensation for these vehicles. Officials said insurance companies could also settle claims of these vehicle owners as early as possible.

Union Bank of India regional head M. Sridhar and lead bank manager K. Priyanka were among those who participated in the meeting.