KSFE offers cheap gold loans to returning expats
THIRUVANANTHAPURAM: In an effort to support the expatriates returning to the state, the government has decided to offer cheap gold loans to the returnees impacted by Covid-19 through its loan company, Kerala State Financial Enterprises (KSFE). A loan of up to `1 lakh will be available at just three per cent interest for the first four months. The loans will attract the existing interest rate of 10.5 per cent from the fifth month.
Chief Minister Pinarayi Vijayan announced the ‘Jeevanam’ package during his media briefing on Tuesday. The Norka card-holders who are forced to return after losing job are eligible to apply for the loans.
The members of the Pravasi Chits will get loans up to ` 1.5 lakh at 3 per cent interest. The government has also decided to reduce the interest rate by one per cent to 8.5 per cent for gold loans up to `10,000.
KSFE has decided to stop all revenue recovery measures till June 30. The relief announced earlier to reduce dues for 2019-20 has been extended to June 30. The penal interest payment for loan schemes between March 21 and June 30 has been cancelled.
KSFE will offer loans to small businesses up to `1 lakh for a period of 24 months. It will attract an interest rate of 11.5 per cent on a daily reducing balance method. The interest will be limited to 11 per cent for prompt payment. Those who pledge fixed deposits and gold as guarantee will get the loans at 10.5 per cent interest. KSFE has also introduced a group loan scheme for businesses. Each group consists of 20 persons and each member in the group shall pay a fixed amount. The loan or chit amount will be given upfront to the needy after four months.
‘Jeevanam’ package for expats
Loans up to
D1 lakh: 3% for first three months, 10,5% thereafter
Members of Pravasi Chits to get D1.5 lakh at 3% interest
No loan recovery by KSFE till June 30
24-month-term loans for small businesses up to
D1 lakh at 11.5%
Group loan scheme for businesses with 20 members in each group