Gujarat CM announces scheme to give interest-free loans to women’s groups

Around 2.51 sakhi mandals registered in rural areas and around 24,000 sakhi mandals registered in urban areas will be eligible to avail benefits of the scheme provided they have repaid any bank loan taken or other borrowing.

Chief Minister Vijay Rupani on Sunday announced Mukhyamantri Mahila Utkarsh Yojana (MMUY) — a scheme of providing interest-free loans to women’s groups in the state – to be launched on September 17, birthday of Prime Minister Narendra Modi.

An official release said that the government is planning to provide total lending up to Rs 1,000 crore to these groups to be registered as joint liability and earning group (JLEG). The release said that in the post-Covid socio-economic life style of the state, the government is committed to have women play a key role. As part of that commitment, the release added, the government is planning to provide interest-free loans to 10 lakh women across the state under the new scheme.

Under the MMUY, 50,000 JLEGs will be formed in urban areas. Similarly, 50,000 such groups will also be formed in rural areas.

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Each group will have 10 women members in it. And these groups will be given interest-free loans by the government. The interest amount will be borne by the state government. And the government is going to sign MoUs with banks shortly, said the release. The government has also decided to waive the stamp duty charges for the loans to be given to these women groups.

Around 2.51 sakhi mandals registered in rural areas and around 24,000 sakhi mandals registered in urban areas will be eligible to avail benefits of the scheme provided they have repaid any bank loan taken or other borrowing. Around 27 lakh women are associated with these sakhi mandals across the state.