Kerala declares Rs 5,650 crore COVID package for small scale traders, farmers

Thiruvananthapuram (Kerala) [India], July 30 : In the bid to uplift small scale traders, industrialists and farmers in Kerala from Covid-19 crisis, state finance minister K N Balagopal on Friday declared a package worth Rs 5,650 crore.
Under the package, the government will bear four per cent interest of all loans worth Rs 2 lakh or below for six months and around one lakh people are expected to benefit from this from August 1.
"Kerala announces Rs 5,650 crore package for helping out small traders, industries and farmers hit hard by COVID-19. The government will bear four per cent interest of loans worth Rs two lakh for six months or below. Will forgo six months rent of government buildings for shops and industries," Balagopal said.
"Around one lakh people will benefit from this from August 1," he added.
On Thursday, Kerala Chief Minister Pinarayi Vijayan had said banks should cooperate more to face the economic crisis created by the COVID pandemic.
The Chief Minister was addressing a meeting of the State Level Bankers' Committee.
"COVID is creating a major crisis in the unorganized sector. The package announced by the Reserve Bank of India in May offers exemptions for non-NPA accounts and borrowers below Rs 25 crore as of March. The state government has asked the Union Finance Minister to declare a moratorium on unconditional interest and penalty interest till December 31, for people and institutions who have been severely affected by the first wave of Covid pandemic and natural calamities," said the CM and directed banks to bring the issue to the notice of Reserve Bank of India.