Gujarat government has pledged to give guarantee-free loans of Rs 1 lakh from banks at 2 per cent annual interest.
Taking Prime Minister Narendra Modi’s self-reliant India mission forward, the Gujarat government has announced a scheme – Atmanirbhar Gujarat Sahay Yojna – for the lower-middle-income group. To leave more cash in the hands of weaker sections of the society, small traders, and street vendors to help them fight the coronavirus-led crisis, the state government has pledged to give guarantee-free loans of Rs 1 lakh from banks at 2 per cent annual interest. Gujarat’s Chief Minister Vijay Rupani said that the move will benefit more than 10 lakh small-traders, hawkers, skilled workers, and people falling under lower middle income who are affected by the lockdown.
CM Vijay Rupani clarified that though the annual interest on the loan is 8 per cent, the beneficiaries would have to pay only 2 per cent as the state government would give the remaining 6 per cent to banks offering loans under the relief package, which is worth Rs 5,000 crore. The beneficiaries would also get a moratorium of six months on repayment of interest and principal amount.
For a tenure of three years, the loans will be available from cooperative banks, district banks and credit cooperative societies on the basis of a written application. The state has more than 200 urban cooperative banks with nearly 1,000 branches across Gujarat, and 18 district cooperative banks with 1,400 branches across the state.
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In a step to make India a self-reliant country, PM Modi has announced a mega economic package of Rs 20 lakh crore earlier this week. The Prime Minister had added that the relief package is aimed towards every section of the society in the wake of the coronavirus-led disruptions and economic crisis. After the announcement, various states are coming up with plans to take the centre’s mission forward.