Amma Micro Loan Scheme
In a major bid to support small vendors, sellers as well as street side store owners, who were badly affected due to the recent flood, Chief Minister of Tamil Nadu Miss J Jayalalithaa on 23rd January, 2016 introduced the “Amma” Loan Scheme for small traders under which interest free 5000 rupees will be provided to shop owners to resume their businesses. Chief Minister dispatched the plan by formally giving over the advance help to five recipients in the Secretariat. The plan is focused for profiting small merchants and dealers who sell fruits, flowers, organic products, vegetables, etc and who were badly hit by the floods recently. In an offer to keep them from acquiring loans from the private lenders with higher rate of interest for their livelihood CM of Tamil Nadu introduced this scheme.
Who are eligible to get the loan?
An official statement stated that roadside vendors like those selling vegetables, fruits or owning small shops and who were influenced by recent rains and floods, could get this interest free loan through different cooperative banks. The cooperative banks are charging 11% interest on the amount of loans but beneficiaries don’t have to pay the interest rate because State government will pay the 11% interest of these loans to the banks. The recipients can reimburse the loan amount in twenty five weeks at 200 rupees a week. The individuals who pay the loan amount on time will be qualified for an additional credit of 5,000 rupees at a lowest interest rate of 4%. Beneficiaries who fail to repay the amount on time have to pay a nominal interest rate of 4%.
The statement said that the banks will hold loan camps for 10 days excluding Republic Day and 31st January 31. The camps will be held on all the flood affected areas of Tamil Nadu including Tiruvallur, Chennai, Kancheepuram, Villupuram and Cuddalore.
When a recipient is distinguished, the documentation needed to get this loan will be accomplished on spot by the authorities of the particular banks. 500 such exceptional camps will be held till February 2, 2016.
This scheme will help people who were badly affected by the recent rains and floods to revive their businesses. The most beneficial point is that the beneficiaries don’t have to pay any interest on the loan amount, which will give relief to them. As we all know that Tamil Nadu was badly hit by recent rains and floods and the most affected people were the road side vendors.
The Chief Minister of Tamil Nadu Miss J Jayalalithaa took a very helpful step for the affected vendors with the Amma Micro Loans Scheme because they won’t think to take loans from private lenders who charge higher rate of interest. Now, the vendors can have peace of mind because they know that they can get a loan of Rs 5000 without any interest from the State Government.
|Interest for paying on time||0%|
|Interest for paying after deadline||4%|
|Who will be benefitted||Roadside vendors|
|Loan Camp||To be held for 10 days in flood affected areas of Tamilnadu|
|Number of Loan Camps||500|