Andhra sets up trust to guarantee enterpreneurs’ credits

June 13th, 2008 - 10:58 pm ICT by IANS  

Hyderabad, June 13 (IANS) The Andhra Pradesh government Friday announced setting up of a trust to provide collateral security for loans to entrepreneurs belonging to the Scheduled Castes (SC) and the Scheduled Tribes (ST). The trust, the first of its kind in the country, will provide collateral security for loans up to Rs.50 million.

“The trust is being formed to facilitate the collateral security by banks. Initially, 5,000 entrepreneurs will be covered during 2008-09,” said a statement from the chief minister’s office here Friday evening.

The chief minister will be the chairman of the trust’s managing committee.

The government also decided to provide 35 percent investment subsidy for men and 40 percent subsidy for women belonging to SC and ST.

The collateral security will be provided for activities like micro and small enterprises including IT, transport operators, hotels, hospitals, fishing boats, super markets and malls, petrol pumps, gas agencies, schools and colleges.

The Congress government has been announcing series of sops for different sections of society to woo voters in the run up to the assembly and Lok Sabha elections scheduled to be held in April next year.

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