Gujarat Chief Minister Vijay Rupani on Thursday announced an interest subsidy, a moratorium and a collateral free loan of up to Rs 1 lakh for over a million small traders, street-vendors and small professionals in the state.
"This loan would be available at 2 per cent annual interest while the remaining 6 per cent interest would be borne by the state government. The beneficiaries would also get a moratorium of six months and would not be required to pay either interest of principal amount during this time," Rupani said in a telecast on social media.
Under the Atmanirbhar Gujarat Sahay Yojana scheme, the loan will be available via written application at co-operative banks, district banks and credit co-operative societies. Guidelines for the loan will be released soon by the state government.
With formalities likely to be completed in the coming three months, Rupani said that the state government would lend around Rs 5000 crore through the loan that carries a tenure of three years.
There are over 220 urban co-operative banks spread across 1000 branches and 18 district cooperative banks with 1400 branches in Gujarat through which small traders and street vendors would be able to avail the loan.