BENGALURU: Mobile banks for disbursing interest-free loans to street vendors and small traders are all set to hit the road on November 22. Chief Minister HD Kumaraswamy’s novel programme seeks to free this poor business community from clutches money lenders.
“The Chief Minister is set to launch the bank on November 22,” said Co-operation minister Bandeppa Kashempur on Friday.
Small traders will get loans up to Rs 10,000 under the 'Badavara Bandhu' scheme, which will be offered without interest and collateral.
The beneficiaries will have the flexibility to repay the loan on daily instalments of Rs 100 or a one-time repayment within 100 days. The scheme has been formulated for the benefit of small-time vendors who obtain loans from powerful money lenders at a hefty daily interest rate up to 10 per cent.
"These vendors are being fleeced by greedy money lenders as they are unable to provide collateral to obtain bank loans. The 'Badavara Bandhu' scheme will bring a big relief for these street vendors," Kashempur said.
Three mobile bank units will hit the road in Bengaluru on the day of the launch and at least one such mobile bank unit will be launched in each district in the state. About 53,000 beneficiaries are set to be covered in the first phase, of which 5,000 are in Bengaluru alone.
Chief Minister Kumaraswamy is also set to launch the 'Kayaka' scheme offering loans up to Rs 10 lakh for self-help groups to set up small enterprises, by the end of this month. According to the scheme, while 50 per cent of the loan will be interest-free, a nominal interest of 4 per cent will be charged for the remaining 50 per cent, which in effect means beneficiaries will pay an interest for only Rs 5 lakh on a loan of Rs 10 lakh.