'Sweet' loans

Bengal is synonymous with sweet tooth. Bengali sweets are popular not just in India but worldwide. Now, these delicacies are all set to go places, thanks to the support of banks.

Business starved state run banks, which are operating in West Bengal have started to support local sweet shops. Union Bank of India has unveiled an exclusive loan for sweet makers in Bengal to help them modernize their kitchen and renovate their old, decades old shops into smart, modern outlets. While Bengal has always been known for their delicious cuisine, due to lack of hygiene and modern looks; it attracts far less loyalists than it deserves. But with bank loans that are offered up to Rs.1 crore for purchasing and replacing machinery, furnishing new shops and meeting working capital needs. It has an interest rate at 10.75% for loans above Rs.25 lakh who have an investment of more than that in plant and machinery. Security is waived off as these loans will be covered under the national credit guarantee scheme and are usually, seven year loans.

And these loans are clearly a hit. Union Bank of India has already sanctioned loans to 108 customers and over 100 more are awaiting approval. SBI too has started offering these loans now. Necessity indeed is a mother of all inventions and loan schemes!