The state government on Friday signed a Memorandum of Understanding (MoU) with Central Bank of India to provide easier and cheaper auto loan to its employees.
Central Bank of India, along with the state government, will now provide vehicle loans at base rate 10.5 per cent, the lowest rate of interest on loan offered by any bank in the country.
On September 11, the state cabinet had approved the finance departmentís proposal to provide vehicle loans to the state government employees through Central Bank of India.
Finance secretary (expenditure) Uday Singh Kumawat signed the MoU on behalf of the state government with the bankís Patna zone manager S.C. Singh in the presence of deputy chief minister Sushil Kumar Modi and a host of other bank officials, including Central Bank of Indiaís executive director V.R. Aiyer.
Modi, who holds the finance portfolio, appealed to the bank officials to give loans to entrepreneurs up to Rs 1 crore under the Credit Guarantee Trust Fund for Micro and Small Enterprise either for setting up industrial units or for buying commercial vehicles.