Interest free loan scheme for flood affected small traders launched
Posted on: 23/Jan/2016 9:48:30 AM
Tamil Nadu Chief Minister J. Jayalalitha launched a scheme that will provide interest free loans for the flood affected traders. Rs. 5000 each was sanctioned to five small traders at the Secretariat on Friday.
Ms. Jayalalitha had announced the scheme during Pongal. She said that it will be applicable for small traders affected by floods and who hail from the districts of Chennai, Tuticorin, Kanchipuram, Cuddalore, Vizhupuram and Tiruvallur, among others. 500 special camps will be held between January 22 and February 2 to educate the traders about the loans.
Those eligible for the loan include small traders such as street vendors selling flowers, fruits and vegetables and food items. Those running petty shops will also be eligible.
The loans will be given out by the District Central Cooperative Societies and Town Cooperative Societies. The State government would be liable to pay 11 percent interest to the banks. The repayment of the loan, made by the vendors, will be at a weekly installment of Rs. 200 over 25 weeks. The government has also announced an initiative to encourage prompt payment. Those who pay promptly will be eligible for another loan of the same amount.
