Himachal govt to provide collateral-free loan to small-scale enterprises

The Himachal Pradesh government on Saturday announced the launch of a scheme to offer collateral-free loans to small-scale enterprises and skill-based workers such as cobblers, tailors, barbers and vegetable vendors.

The state government has earmarked Rs 40 crore for the Mukhya Mantri Laghu Dukandar Kalyan Yojna (MMLDKY) and said that it will target the inclusion of 75,000 individuals falling in the 18-55 age bracket in its initial phase, a statement issued here on Saturday said.

The government has devised a comprehensive scheme to offer collateral-free loans, aiming to financially fortify small scale enterprises and would provide accessible loans of up to Rs 50,000 with a substantial 50 per cent interest subsidy, the statement added.

"The scheme aims to empower small entrepreneurs and uplift the state's economy", Chief Minister Sukhvinder Singh Sukhu said.

He added that the government envisions providing vital support to those who often face hurdles in accessing financial resources, thereby strengthening the economy of the state.

The MMLDKY scheme will cover small enterprises and skill-based workers such as cobblers, tailors, barbers, mobile repairing vendors, vegetable and fruit vendors, among others, residing and conducting their businesses in rural areas, the chief minister said.