Gujarat government distributed application forms beginning Thursday through cooperative banks for those who want to avail the guarantee-free loan up to Rs 1 lakh under the Atmanirbhar Gujarat Sahay Yojna (AGSY).
The forms are being distributed through 9,000 outlets across Gujarat. Under the scheme, people running small businesses and those from the lower middle-income groups can avail the guarantee- free loan.
Jyotindra Mehta who has played an instrumental role in taking the idea to its logical conclusion talked to Indian Cooperative in detail and shared his vision about what this loan can do for the people of Gujarat.
“We have refrained from the loan size of Rs 5000 being doled out by many states as this money is neither here nor there. We have made three sizes depending on the need of entrepreneurs- Rs 25 k, Rs 50k and Rs 1 lac”, said Mehta explaining the scheme.
With this kind of money one can kick start his business and earn his livelihood, which has been affected by Covis 19, he underlined.
Recalling elaborate discussions he had with the stake-holders in the past, Mehta said “Initially we wanted both-capital as well as interest subvention but given the tight situation of the state coffers we settled for the interest subvention part.”
Also, we wanted to avoid a loan at 0% percent as it does not convey the right message. One has to own up and be accountable”, Mehta said.
Besides, Mehta wishes to expand this scheme to sectors like health care and educational institutions. “We are ready to give loans to Doctors and health staff members if the hospital stands guarantees for them”, he stated.
Mehta also informed that there are 218 UCBs with more than 1000 branches spread across the states. Then there are DCCBs in 18 districts with more than 1200 branches. Add 7000 of credit co-ops and the scheme is capable of touching every corner of the state, he noted.
It bears recall that earlier, on the lines of Atma Nirbhar Bharat Abhiyaan, Gujarat CM Vijay RupanI announced ‘Atmanirbhar Gujarat Sahay Yojana’ for the benefit of over 1 million lockdown-hit small traders, hawkers, skilled workers and a cross-section of people falling under the lower middle-income groups.
The scheme aims to cater to the people in lower middle-income groups who can avail the guarantee-free loan of Rs 1 lakh from banks at 2 percent annual interest. The government will pay another 6 per cent interest to banks giving loans under the scheme.
According to the scheme norms, while the tenure of loan will be three years, payment of instalments will begin only after six months of disbursal.
“Around 10 lakh such people will be given a loan up to Rs 1 lakh each from banks at just 2 percent annual interest to start their lives afresh, Rupani said. Loans will be provided on the basis of applications where no guarantee will be required, he said.