HYDERABAD: The State Government has decided to extend the `pavala vaddi’ interest scheme to ex-servicemen and their widows for self-employment schemes. The government will subsidise interest rate on loans taken from banks over and above 3 per cent. The scheme will be applicable to all those ex-servicemen and widows who obtain fresh term loans from scheduled commercial, cooperative and regional rural banks. The repayment of interest subsidy from the government will commence in April 2010.
The maximum amount of loan will be limited to Rs 5 lakh for each applicant. Under this scheme, the interest charged by banks, over and above 3 per cent per annum, will be reimbursed to the borrower.
Those ex-servicemen and widows who repay the loan installments comprising the principle and interest as per the repayment schedule will be eligible under the scheme from April 1, 2010.
The scheme shall not include penal interest, liquidated damages.
The borrowers should submit a project report to the Zilla Saink Welfare Officer cotaining the details of self-employment venture such as type of venture, location, approximate capital cost and a certificate that the loanee will repay the loan in installments including 3 per cent interest.
The related GO is posted on the Interent and can be accessed at www.aponline.gov.in.