A proposed scheme to give interest-free loan of Rs 1 lakh for the flood-affected in Kerala to buy home equipment may face a delay in execution. Banks have informed the government that it required a special permission from their director board to lend loans at 9 per cent interest that will be borne by the government.
The scheme has been conceived for the benefit of members of the Kudumbashree project, the state government’s 1998-initiated scheme for women empowerment and poverty eradication.
The plan was that the government will bear the 9 per cent interest on the Rs 1-lakh loans being availed for the purpose.
The bankers association has informed the Kudambashree director that giving loans for below-normal interest needs sanction from the board of directors. This will cause a delay of at least two weeks as the board meets at the end of every month.
To avoid such a delay, the bankers association has requested the Kudumbashree director to write to the individual banks personally. Such a measure is not necessary in the case of cooperative banks.
Also, non-members of Kudumbashree will not be eligible for the 9 per cent loan package, the association clarified. The government had promised that all people affected by the calamity can apply for the scheme even if they are not members of Kudumbashree.
The non-members, though, can join the Kudumbashree at the earliest. Only that they need to participate in its neighbourhood meets for one month at a stretch. To ensure that such new members of Kudumbashree become eligible for this loan scheme, the bankers association has extended the date of accepting applications till December 31.
