CM announces loan waiver under Badavara Bandhu

CM announces loan waiver under Badavara Bandhu

Part of: GS Prelims and GS-II – Welfare schemes; Governance

In News: 

1. Karnataka Chief Minister recently announced waiver of loans under the Badavara Bandhu scheme, to provide relief to the poor due to COVID -19 pandemic.

Important value additions:

Badavara Bandhu scheme

1. Under the scheme, mobile banks were launched to disburse interest-free loans to street vendors and small traders.
2. Small traders will get loans of up to Rs.10,000 without any interest and collateral.
3. The beneficiaries will have the flexibility of repaying the loan on daily instalments of Rs.100 or one-time repayment within three months. 
4. If they repay within the stipulated time, they are eligible for a fresh loan of up to Rs.15,000.