Loan for small vendors unveiled
As part of the scheme, the state will pay a 11 per cent interest to the private co-operative banks that lend money.
Chennai: The State government on Friday unveiled the Amma small traders loan assistance scheme at a function at the State secretariat to assist traders who were affected by floods.
Under the scheme small traders affected by the floods will be given Rs 5,000 as an interest free loan to restart their business and upon completing the loan, a fresh loan with a four per cent interest will be provided to the vendors.
An official press release said Chief Minister J. Jayalalithaa kick started the scheme and is aimed to prevent small traders from borrowing money from private lenders at high interest rates. The Chief Minister handed over loan assistance to five beneficiaries.
As part of the scheme, the state will pay a 11 per cent interest to the private co-operative banks that lend money and beneficiaries have to repay the loan in installments of Rs 200 per week.
Cooperative banks would hold 500 special camps for 10 days in flood-hit districts including Chennai, Tiruvallur, Kancheepuram, Cuddalore, Villuppuram and Tuticorin.
The camp to help fruit and flower vendors will be held till February
2, except on January 26, Republic Day and January 31 being a Sunday, the release said.