District cooperative bank, Ernakulam will provide a total loan of Rs. 470 crore for the Kochi metro rail project. An agreement was earlier signed between the bank and the metro rail project at the Kakkanad headquarters of the bank.
Indian Express reports the loan will be subject to repayment by the Government of Kerala over a period of 12 years. The loan will be made available at a floating interest rate of 9.95 per cent, which is linked to State Bank of India’s base interest rate, without any ‘attached’ charges
As per the plan, the loan will be used mainly for meeting the land acquisition cost of the Metro Rail project between Vyttila andTripunithura.
