Banks, financial institutes should stop pressurising poor amidst COVID-19 crisis: MCAN
Source: The Sangai Express

Imphal, November 29 2020: The Meetei International Civic Action Network (MICAN) has urged bank and other financial institutions to immediately desist forceful seizure of properties and auctioning for failing loan repayment at a time when COVID-19 pandemic is hitting hard on lives of many.

Globally, millions of lives have been lost due to the contagion and India is one of the worst hit Nations, MICAN said in a statement.

The pandemic has forced the economy of the country to collapse and constricted livelihood of many labourers and small businessmen across the State due to extensive lockdown, it said.

Owing to the situation, many people who have taken loan for setting up business or other purposes are facing a tough time paying their instalments or interests, it said.

Considering the plight of the loanees, the Central Government has been trying to alleviate the hardships by proposing loan moratorium, loan restructuring norms and even a case regarding the issue is pending at the Supreme Court, which has also ordered not to disturb the loanees until the case is resolved, it said.

The scenario in the State is, however, is contrasting as some bank/financial institutions are indulging in extreme actions such as seizure of properties and auctioning by remarking the loanees as non performing, it said.

Even as the bank or the institute find it necessary or there are supporting Acts to take up such actions, it is untimely and should be stopped at the earliest, MICAN said.

MICAN, is not against any institute but displacing families from their properties for being unable to pay back during such a crucial juncture is unjust, it said while reminding these loanees are contributing in banks and financial institutes to survive.

While requesting concerned District Magistrate not to entertain the request from banks or financial institutes to physically take over the properties of loanees and sold them on auction for the time being in the wake of the COVID-19 pandemic.

MICAN also appealed to give some more time to help loanees settle their financial instability first.

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