Kerala Announces Rs 5000 cr to assist Small-scale Traders, Farmers

The Kerala government has announced a financial plan of more than Rs 5,000 crore to revive the state’s economy that has been unstable due to the COVID 19 pandemic.

Highlights

  • Finance Minister K N Balagopal announced a Rs 5650 crore financial plan at the state assembly to help the state’s small traders and farmers. This package is designed to help small businesses and farmers in the state negatively affected by the pandemic.
  • The state government has decided to issue subsidized loans and announced new loan programs for Kerala State Financial Enterprises (KSFE) and Kerala Financial Corporation (KFC) and.
  • For loans up to Rs 2,00,000 rupees, the state government will pay 4% of the interest on the loan over 6 months period.
  • As part of the package, the government also announced the exemption of low-interest loans and credit facilities.
  • The state government also decided to help small businesses by giving up rents for stores and buildings owned by the state government between July and December 31 of this year.
  • MSMEs are exempted from building tax from July to December 31.
  • This will be of great help to small and medium-sized entrepreneurs. Since the state government provides interest subsidies, bankers are required to provide loans. Merchants can avail these loans at lower interest rates.
  • The state government of Kerala has also decided to provide loans of up to Rs 1 crore at 5% interest rate for a total of 500 business enterprises a year.

Conclusion

This is the third financial package which has been announced by the government of Kerala with the aim to tackle the economic crisis caused due to the COVID-19 pandemic.

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