In a major move aimed at helping the lower middle class, Gujarat govt has announced a scheme where people can avail guarantee-free loan of Rs 1 lakh from banks at 2 percent annual interest. The government has come up with this scheme after discussion with district, scheduled and cooperative banks, the chief minister said.
The revolutionary scheme was announced by the Chief Minister Vijay Rupani and is being popularized by his long-time friend Jyotindra Mehta who happens to be the President of the apex body of urban cooperative banks in the country.
The announcement reads “The Gujarat government on Thursday announced a scheme under which people in lower middle-income group can avail guarantee-free loan of Rs 1 lakh from banks at 2 per cent annual interest as it seeks to help them get back to normal life disrupted by the COVID-19 lockdown.”
The government will pay another 6 per cent interest to banks giving loans under the scheme, Atmanirbhar Gujarat Sahay Yojna (AGSY), targeted at small businessmen and a cross- section of people falling under the lower middle-income group.
According to scheme norms, while the tenure of loan will be three years, payment of instalments will begin only after six months of disbursal.
On the lines of #AtmaNirbharBharatAbhiyaan, CM Shri @vijayrupanibjp announces ‘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 group.
Other states have declared assistance of Rs 5,000 or so to such people. However, we are of the opinion that such a small amount will not bring their life back to normal, he said.
“Around 10 lakh such people will be given a loan of 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 application where no guarantee will be required, he said.