Interest-free loans for flood-hit traders

Chennai: In a boost to medium small and micro enterprises sector and small traders hit by Chennai floods, Chief Minister J. Jayalalithaa on Thursday unveiled various steps, including loan moratorium and interest-free loans. “I have ordered refurbishment of basic infrastructure in industrial estates under the Tamil Nadu Small Industries Development Corporation Limited at a cost of Rs 25 crore,” she said in a statement. She also waived the fee of replacement of electricity consumption meters affected in floods for MSMEs. The meter fee of Rs 26,000 for high tension consumers and  Rs 3,500 for low tension users will be borne by Tamil Nadu Generation and Distribution Corporation, the release said.

She said several traders and small vendors have been badly hit in the recent floods. Particularly, the worst affected are traders dealing in essential commodities like vegetables, fruits, flowers and other food items and there is a need to bale them out from financial crisis. Traders are on the verge of obtaining loans from private individuals at high interest rates and this would add to their existing burden. Hence, the State is taking up the bale out initiative, she said.

For small hawkers and vendors selling flowers, fruits and vegetables, the Chief Minister announced interest-free loans up to Rs 5,000 through cooperative banks. After repayment of such loans in 25 weeks with Rs 200 per week, they would be again provided a fresh loan with interest rate of four per cent.