THIRUVANANTHAPURAM: Kerala State Cooperative Bank (KSCB) has launched a loan scheme for the benefit of entrepreneurs in rural tourism sector.

Under this scheme called `Co-bank Grama Yathra,' the bank will give loans to individual entrepreneurs, partnership firms and companies for setting up boarding and lodging facilities in rural areas for tourists. Collateral security covering 150 per cent of the loan amount has to be provided by the borrower, president of the bank K.R. Aravindakshan said at a press conference here on Friday.

A loan of up to Rs.25 lakhs is available under this scheme for building a houseboat. And for getting a houseboat repaired the bank will give Rs.10 lakhs as loan. The borrower needs to start repaying the loan only six months after availing it. The repayment period is seven years and six months.

Mr. Aravindakshan said the Union Government had identified rural tourism as a sector that could generate employment and income for the people in the villages, prompting the National Bank for Rural and Agriculture Development (NABARD) to announce a new scheme offering refinance facility to the cooperative financial institutions promoting viable ventures in the sector. The KSCB will receive NABARD's assistance for `Co-Bank Grama Yathra.'

Mr. Aravindakshan also announced two other new schemes. Under the first, an individual will get a loan of up to Rs.25 lakhs to purchase farmland. The loan cannot exceed 80 per cent of the cost of the land purchased and the land will be treated as collateral security. The interest rate is 9.5 per cent and the repayment period 10 years. Repayment has to be made in monthly instalments.

The other scheme, called `Co-Bank Own Your Shop,' is for extending loans to start showrooms, franchises, margin-free-markets, call centres, small business establishments, computer service centres and software development centres.

The loan facility will be available for purchasing shops and furnishing shops. Individual entrepreneurs, partnership firms and companies can take up to Rs.20 lakhs as loan under this scheme.

For companies installing petrol pumps, the loan amount can go up to Rs.60 lakhs. Floating interest rates fixed by the bank from time to time will be applicable for these loans. The repayment period is 10 years and the borrower has to provide collateral security covering 150 per cent of the loan amount.

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