The Hindu Business Line : KSCB unveils loan schemes

Attractive Schemes
Refinance up to Rs 20 lakh under rural tourism scheme
Loan limit of up to 80 per cent of the price of farmland
Loans available for petrol pumps and renovating existing business establishments

Thiruvananthapuram , May 5

Kerala State Co-operative Bank Ltd (KSCB) has come up with new loan schemes, which include one aimed at development of rural tourism in the State.

The rural tourism loan scheme has been conceived in the light of the Union Government having selected the sector for ensuring employment to the local people and improving their income. Nabard has announced refinance up to Rs 20 lakh under the scheme.

Mr K.R. Aravindakshan, President of KSCB, said on Friday that the loan scheme formulated by the bank, called `Cobank Grama Yatra', envisaged extending assistance for offering accommodation, food and travel facilities to the tourists.

The loan, which requires collateral security to the extent of 150 per cent of the amount, will be given to individuals, partnership firms, and companies.

Under the scheme, loans up to Rs 25 lakh will be given for construction of houseboats and up to Rs 10 lakh for repair of houseboats. The repayment period is seven-and-a-half years with a moratorium of six months.

The bank has also announced a scheme for purchase of agricultural land with a loan limit of up to 80 per cent of the price of the land. The loan carries an interest rate of 9.5 per cent and has to be repaid in monthly instalments over a period of 10 years. The purchased land will be treated as collateral security for the loan.

Another new scheme from the bank is for extending loan for buying space to start showrooms, margin-free markets, call centres, computer software development and service, and small business ventures. Loans will also be made available for setting up petrol pumps and renovating existing business establishments.

Under the scheme, individuals, partnership firms, and companies, will be eligible for loans up to Rs 20 lakh. The loan limit is Rs 60 lakh for setting up petrol pumps.

The amount has to be repaid in monthly instalments over a period of 10 years. The loan will be extended against collateral security of the value of 150 per cent of the amount.

The bank is all set to formally launch its core banking facility on April 8.

More Stories on : Co-operatives | Credit Market | Kerala

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