Women’s groups in Gujarat to get interest-free loans; scheme likely to be launched on PM Modi's birthday

The scheme, under which loan of Rs 1 lakh will be given, is likely to be launched on PM Narendra Modi’s birthday on Sept 17

The state government is all set to announce an interest-free loan of Rs 1 lakh for women’s groups as a step towards their empowerment. The scheme is likely to be announced by Chief Minister Vijay Rupani on September 17, the day that marks Prime Minister Narendra Modi’s birthday.

Under the scheme, the government is expected to disburse interest-free loans to the tune of Rs 1,000 crore to women to help them become self-reliant (atmanirbhar). According to highly placed sources in the government, each group with 10 women members will be eligible for the loan. Around 50,000 joint liability and earning groups will be established in rural and urban areas with a minimum of 10 members each. The group would be eligible for the loan.

As part of the scheme, the interest on the loans will be paid to the banks by the government. This is expected to cost the state exchequer approximately Rs 170 crore. There are over 2 lakh such sakhi mandals (women self-help groups) in rural areas and over 23,000 in urban areas in the state. Such groups have been paid Rs 428 crore in year 2019-20.

The stamp duty for the loan is also likely to be waived off by the government. It will also support the formation of such groups. New groups will be formed in both rural and urban areas.