Bangalore: Gujarat is now set to promote and boost all budding entrepreneurs in the state, as Chief Minister Narendra Modi announced that the state government will stand as guarantor of their loans taken for setting new entrepreneurial ventures as reported by Times of India.

This announcement was made by Modi at Bhuj as a part of his 625kms month long 'Swami Vivekananda Yuva Vikas Yatra'. He pointed out saying that aspiring entrepreneurs who wants to begin their own business or set up an industry with their entrepreneurial idea find it very difficult to get loans from banks or any financial institutions in absence of guarantors.

"But now they need not worry as state government will become the guarantor and repay the loans if they default, Modi said. He also announced an increase in stipend for interns and apprentices who work in an industry for few months as a part of project or to gain industrial experience while pursuing their education.

"I have written number of times to Prime Minister Manmohan Singh to increase the amount for apprentices, but he is yet to respond on it. But state government has decided to increase the present amount of Rs 1,490 to 2,990 per month,” Modi also added saying that the increase in the stipend will benefit 40,000 youngsters during their internship period.