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Kerala

Covid-19: Kerala Announces Rs 5,650 Crore Financial Package to Help Small Traders, Farmers

The minister said that under the package subsidised loans would be provided to small-scale traders and new loan schemes under the Kerala Financial Corporation (KFC) and the Kerala State Financial Enterprises (KSFE). 

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Kerala government announces Rs 5,000 crores package for small scale traders and farmers (Source: Pixabay)

New Delhi: The Kerala government on Friday announced a financial package of Rs 5,000 crore to help the state economy recover from the Covid-19 pandemic.  Finance Minister K N Balagopal announced Rs 5,650 crore in the state legislative assembly which will assist MSMEs and farmers.

“This package is to provide assistance to small-scale traders and farmers of the state who have been adversely affected by the pandemic,” Balagopal told the media here.

The minister said that under the package subsidised loans would be provided to small-scale traders and new loan schemes under the Kerala Financial Corporation (KFC) and the Kerala State Financial Enterprises (KSFE). 

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“We will be giving very subsidised loans. The state government will bear the four per cent of the interest of loans for six months for the loans up to Rs two lakh,” Balagopal said.

The state government will also be providing loan waivers and low interests packages to help the state economy to get back on track.

The state will also not take rent from shopkeepers who operate from government-owned buildings from July to December 2021.

The MSME sector has also been provided with building tax exemption from July till the end of the year.

“It will be helpful for the small medium entrepreneurs. We have asked the bankers to provide loans as the state government is giving interest subvention. Traders can avail loan for a smaller interest per cent,” he said.

This is the third financial package announced by the Left government to tackle the economic crisis due to the pandemic.

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Balagopal said the state government has decided to provide loans up to Rs one crore at a five per cent interest rate for 500 business enterprises a year.

“This is available to young entrepreneurs under the age of 50,” he said.

The government has also announced a moratorium of one year for the loans taken by small-scale enterprises from the KFC.

With inputs from PTI