The Hindu Business Line : KSFC unveils one-time loan settlement scheme

Bangalore, July 10 The Karnataka State Financial Corporation (KSFC) has come out with a one-time settlement scheme for small and tiny borrowers for loans of up to Rs 10 lakh.

A KSFC release said here that the State Government has extended budgetary support of Rs 54 crore for the settlement.

The scheme would allow settlement of loans that have turned to non-performing assets till April 2006. Under the scheme, the interest dues by the KSFC would be compensated by the State Government.

The borrowers would have to pay only the principal and other debts. In addition, the borrowers would be expected to pay part of the simple interest on the outstanding dues as one-time settlement, implying an interest subsidy.

The release added that the scheme would come into effect immediately, allowing for fast disposal of NPAs.

More Stories on : Financial Institutions | Non-Performing Assets | Karnataka

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