News Desk: Kerala finance minister KN Balagopal announced a financial package of Rs 5,000 crore on Friday to revive small trades and industries and assist farmers of the state affected by decrease in business during the pandemic

Announcing the package, he said, “We decided to allow some loan schemes. For loans up to Rs 2 lakhs we will give a four per cent interest subsidy.”

The government has decided to forgo six months rent for government buildings for shops and industries extending from the period of July to December 31, 2021. It will also provide an exemption for license fees. “We have also decided not to collect fixed charges for electricity,” Balagopal said.

Kerala Financial Corporation and Kerala State Financial Enterprises also announced loans. “It will be helpful for the small-medium entrepreneurs. We have asked the bankers to provide loans as the state government is giving interest subvention. Traders can avail loan for a smaller interest per cent,” he said.

Additionally, Micro, Small and Medium Enterprises have been given a building tax exemption from July to December 31.

This is the third financial package announced by the Kerala government to tackle the economic crisis triggered by the pandemic.

Balagopal said the state government has decided to provide loans up to one crore rupees at five per cent interest rate for 500 business enterprises a year.

“This is available to young entrepreneurs under the age of 50,” he said. The government has also announced a moratorium of one year for the loans taken by small-scale enterprises from the KFC.