Surat, July 11 (IANS) Surat's flood-affected traders, small businesses and industries will be able to access loans of up to Rs five lakh at a concessional interest rate of 9 per cent, while the Gujarat government is expected to announce a relief package after completing a rapid assessment of losses caused by the recent flooding, Deputy Chief Minister Harsh Sanghavi said on Saturday.

The announcement came as The Varachha Co-operative Bank Ltd. launched its "Flood Loan" scheme and a new insurance product covering losses caused by floods and waterlogging at a programme held at the bank's head office in Surat.

Addressing the gathering, Sanghavi said heavy rainfall had led to flooding and waterlogging across several parts of Surat, affecting residential and industrial areas and causing losses to industries, commercial establishments and livelihoods.

He said the state government had set a target of completing a survey of flood-related damage within 72 hours to ensure an accurate assessment of losses and that about 80 per cent of the exercise had already been completed.

"Reports on the losses suffered by small and large industries, shops and commercial establishments are being prepared. Based on these reports, the state government will announce a relief package shortly," Sanghavi said.

He said Surat had repeatedly demonstrated its ability to overcome adversity and expressed confidence that the government, together with local social organisations, would help restore normalcy in the city at the earliest.

Referring to the bank's initiative, Sanghavi said: "Varachha Bank had fulfilled its commitment of standing with people during difficult times by announcing loans of up to Rs five lakh for flood-affected people at an interest rate of only 9 per cent."

Under the scheme, eligible borrowers can avail loans of up to Rs 5 lakh with a repayment period of up to 60 months.

The bank has also set up a dedicated facility at its head office to provide applicants with guidance and facilitate faster processing and approval of loan applications.

The bank also introduced a general insurance scheme to protect businesses against losses from floods and waterlogging.

Under the scheme, traders can obtain insurance cover of up to Rs 10 lakh for stock by paying an annual premium of Rs 1,000.

The policy is intended to provide financial protection against damage to stock, warehouses and other business property resulting from flooding or waterlogging.

Minister of State for Health, Praful Panseriya, said the initiative would particularly benefit small traders affected by the floods.