The scheme aims to provide loans to at least 10 lakh people. The loans, however, will be provided on the basis of application and will be guarantee-free.
The state government has rolled out the forms but till now there has not been any update on the online method of application. However, as per the reports, it has been confirmed that the application forms will be made available at 9,000 outlets across the state that will include District Co-operative bank branches, urban co-operative bank branches and credit societies.
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Under the Rs 5,000 crore relief scheme, the government will provide loans of up to Rs 1.5 lakh to small traders as well as other middle-income earners at an interest rate of 4 per cent without any guarantee.
It is the turn of most traders as well as traders to suffer huge losses due to the two-and-a-half months of lockdown. The government recently announced a loan of up to Rs 1 lakh at 2 per cent interest for low-income earners.
Under the scheme, the government will pay six per cent interest, while the borrower will have to pay two per cent interest.