District Cooperative Bank , Ernakulam will lend the beleaguered Kerala State Road Transport Corporation (KSRTC) Rs 300 crore to tide it over the current financial crisis.
The loan will be guaranteed by the Kerala state govt. The fresh loan is in addition to the Rs 200 crore the corporation had taken earlier from the district cooperative bank, Palakkad. .
The guarantee for the Rs.300-crore loan from the District Cooperative Bank, Ernakulam, is for five years. The CMD would evolve a mechanism for payment of guarantee commission as there is no provision for waiver under the Guarantee Act.
As in the case of repayment of loan taken from the District Cooperative Bank, Palakkad, the corporation would have to make arrangements for repaying the loan from the daily ticket collection.