Gujarat chief minister on Thursday announced the Gujarat Aatmanirbhar package for the state under which over 10 lakh people will be eligible for loans at lower interest rates.
The package is particularly targeted at small shopkeepers, rickhaw-drivers, vendors and self-employed people. They will be eligible for Rs1 lakh of loan at an interest rate of just 2%. The state will pay the remaining 6% interest on such loans to the concerned bank.
Under the scheme, the beneficiaries will not have to repay the interest and principal in the first six months. An estimated Rs5,000 crore is expected to be provided as an unsecured loan under this scheme.
The loans will be given by the urban co-operatives, dist co-operatives and credit societies in the state. The loan will be for a period of 3 years.
Prime minister Narendra Modi had earlier announced a Rs20 lakh crore economic package for the country to help it deal with the Covid19 and the resultant lockdown due to the pandemic. Later Finance Minister Nirmala Sitharaman had given details of the part of the package which included help for MSMEs, and reduction in EPF contribution for both employers and employees.