CM unveils loans for small vendors

In a big boost to small traders, vendors and road-side petty shop owners, who were hit hard by the recent floods, Chief Minister J Jayalalithaa today launched the ‘Amma’ Small Traders Loan Assistance Scheme’ under which Rs 5,000 interest free loan would be given to them to restart their business activities. 

The CM launched the scheme by formally handing over the loan assistance to five beneficiaries at the State Secretariat here. The scheme was aimed at benefiting small vendors and traders, who sell flowers, fruits and vegetables, as they were hit hard by the recent floods. In a bid to prevent them from borrowing loan from private lenders at higher interest rates to sustain their livelihood, Jayalalithaa had on January 14 announced that the interest free loan scheme would be launched for the benefit of small traders.  

Under the scheme, interest free loans would be given up to Rs 5,000 to street vendors and petty shop-owners in flood hit districts of Chennai, Tiruvallur, Kancheepuram, Cuddalore, Villupuram, Tuticorin and other districts through co-operative banks. “They will have to repay it at Rs 200 per week for 25 weeks. 

The State will pay the interest component of 11 per cent to co-operative banks. If the vendors repay the loan in the stipulated time, they will be provided a similar amount of loan at the rate of four per cent interest,” she added. 

Cooperative banks would hold 500 special camps for ten days from today till February two (except on Republic Day and January 31 being Sunday) for the benefit of small traders and vendors, in which the beneficiaries to avail the loan would be identified. In line with this announcement, Jayalalithaa launched the scheme at the Secretariat. 

The Chief Minister had already launched low-cost canteens, and other public amenities which garnered the government goodwill. Since then the brand got a boost with Jayalalithaa launching various schemes for the benefit of public, including the launch of ‘Amma Call Centre’ three days back. 

The Amma small traders loan scheme is the latest initiative of the Jayalalithaa Government under the brand Amma.