May 15, 2020 1:19:05 am
Gujarat Chief Minister Vijay Rupani on Thursday announced “Atmanirbhar Gujarat Sahay Yojana” wherein the urban and district cooperative banks and credit societies in the state will provide Rs 5,000 crore as loans to small entrepreneurs and businessmen here at an interest rate of two per cent.
The government is also giving a moratorium on payment of the principal amount and interest for the first six months on the loans that will have be repaid in three years.
“Thinking about the small businessmen and traders whose business has come to a standstill due to the lockdown, the state government is announcing a “Atmanirbhar Gujarat Sahay Yojana” under which more than 10 lakh people will take advantage,” said Rupani. He said the government wants the businesses to recover in the next 6-12 months from the impact of the lockdown.
CM said loans worth Rs 5,000 crore will be given out in the next three months.
For small people like electricians, ‘dhobi’ and shopkeepers, the other states have announced an assistance of only Rs 5,000… The government has decided to give Rs 1 lakh as loan on two per cent annual interest to them which was lower than 12 per cent rate of interest in the market.”
The 260 urban cooperative banks with 1,000 odd branches, the credit societies and 18 district cooperative banks with 1,400 branches will be giving loans worth Rs 5,000 crore based on an application made by the small entrepreneurs.
“The remaining six per cent interest on the loan will be paid by the state government… No security will be asked by the banks,” the CM said adding that the interest with be paid for three years.
“The person taking a loan will not have to pay any EMI or interest for the first six months,” he added. The interest will be distributed for the remaining part of the three-year period.
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