Thiruvananthapuram: The State Government on Friday announced a financial package of Rs 5,650 Crore for small traders and farmers who were affected by locking and economic slowdown because of the second wave of Pandemic Covid-19.
Minister of Finance K N Balagopal said the package – which followed the two previously announced last year and earlier this year – including loan subsidies around Rs 2,000 Crore and rental and neglect of power from Rs 274 Crore.
The state government will offer interest up to 4% on loans to RS 2 lakh available from state financial institutions, state financial institutions, cooperatives and commercial banks for six months.
The scheme is expected to benefit one lakh person, will apply to loans that will be available from August1.
The government will also ignore the rental of government property provided for business purposes from July 1 to December 31.
Building tax, fixed electricity and lease costs (for government buildings) micro, small and medium enterprises will also be released during the period.
, The Kerala State Financial Enterprises (KSFE) will release a fine of interest in the default loan from January 20 to September 30.
Interest and a fine of interest in the range of 50-100% will also be released for sophisticated until September 30.
The Kerala Financial Corporation (KFC) will introduce three new schemes to rejuvenate entrepreneurship.
Payment relief for a small group includes Kerala Startup Program which provides up to RS 1 Crore as a loan without collateral guarantees, loans to RS 20 Crore for initiatives in the industrial area and the second phase of the Minister of Entrepreneurship Development Program (CMEdp).
Under the CMEDP, a loan until Rs 1 Crore will be given to interest of 5% for 500 units / year for five years.
Entrepreneurs under 50 can file a scheme.
Small scale entrepreneurs who have not default on loans taken from KFC until March 31 this year will be offered a one-year payment moratorium.
This will take effect from July 1 and 820 business initiatives are expected to benefit from it.
KFC will offer an additional 20% loan on existing loans for the boosturismandsmall-scale initiative.
As many as 3,000 loans will be restructured based on RBI guidelines.
KFC will bear up to 90% of the cost of venture manufacturing products which are useful in stopping the spread of covid and providing assistance to covidinfected.
It has also revised loan interest rates for various businesses – ventures and small-scale health sectors – from 9.5-12% to 8-10.5%.
The minister said the government would disburse the retirement of welfare for two joint months in August, the cost of Rs 1,700 Crore.
The government will also spend RS 526 Crore for special food kits to be distributed during Onam, he added.