Kerala Announces Relief Package of Over Rs 5000 Crore for Small Scale Traders, Farmers

Kerala’s finance Minister, K N Balagopal has announced a 5,650 Crore package in the state Assembly for the betterment of small scale traders and farmers of the state.

The Kerala government has announced a financial package of over Rs 5000 Crore to revive the state economy that is lagging due to the COVID 19 pandemic. “This package is specially focused to provide assistance to small scale traders and farmers of the state who have been adversely affected by the pandemic” as Balagopal told media.

This package was announced to revive Kerala’s economy which is facing a severe financial crisis due to pandemic.

Different Initiatives taken up by the Kerala government to help small scale traders and farmers affected by Pandemic:

• The state government has decided to provide subsidized loans. The government will bear the 4% of the interest of loans for six months for the loans up to Rs 2 lakhs. Small scale traders and Farmers can apply for special loans under schemes offered by Kerala Financial Corporation and Kerala Financial State Enterprises (KFSE).

• The state government will provide loans up to Rs 1 Crore at 5% interest rate for 500 enterprises a year. These loans can be availed by young entrepreneurs under the age of 50 years.

• The government has also decided to help small scale businesses by waving off the rent from the shops and buildings owned by the state government for the period from July to December 31 this year.

• Micro Medium and small scale enterprises have also been given a building tax exemption from July to December 31.

• The government has also announced a moratorium of one year for the loans taken by small scale enterprises from Kerala Finance Corporation.

This is the third financial package announced by the left government to tackle the economic crisis due to Pandemic.

Kerala Financial Corporation: It is a government owned non banking financial company in the state of Kerala. The company was formulated by the State Financial Act of 1951 passed by the Kerala Legislative Assembly to accelerate the industrial growth of the state of Kerala.