Under the package, an interest subsidy, moratorium on repayment and a collateral free loan of up to Rs 1 lakh will be given to small traders, professionals and street vendors.
The Gujarat government on Thursday announced a Rs 5,000-crore relief package for tiny businesses. Under the package, an interest subsidy, moratorium on repayment and a collateral free loan of up to Rs 1 lakh will be given to small traders, professionals and street vendors.
Announcing the relief, chief minister Vijay Rupani said that though the annual interest on the loan is 8% but the beneficiaries would have to pay only 2% as the state government would bear remaining 6%.
According to him, the beneficiaries would also get a moratorium of six months on repayment of interest and principal amount.
“The loan would be for tenure of three years and the state government would finalise guidelines for the same soon. We hope to complete all the formalities in coming three months,” said the chief minister.
Rupani further said that the loans will be available under Atmanirbhar Gujarat Sahay Yojana from cooperative banks, district banks and credit cooperative societies on the basis of a written application.
The state has a huge network of more than 220 urban cooperative banks having 1,000 branches across Gujarat. Moreover, 18 district cooperative banks have 1,400 branches across the state.