Kerala Sahayahastham Scheme 2021 – CM Interest-Free Loans to Women SHGs

In the wake of the pandemic that has swept economies off their feet all over the world, finding sustainable solutions that keep the economies afloat become a priority. Governments all over the world have been offering relief aids to entrepreneurs who have suffered the most with the pandemic affecting the usual flow of business.

Things are not so different in Kerala as well, where small and medium businesses have suffered unprecedented losses. To help such businesses stay afloat and keep their finances running, the Kerala government has come up with an innovative solution – the Kerala Sahayahastham scheme 2021.

About the Kerala Sahayahastham Scheme 2021

Under the implementation of the Sahayahastham scheme, the beneficiaries will receive financial assistance from the government to be able to run their business. This financial assistance will be offered to small and medium entrepreneurs in the form of Interest-free loans to women who run Self-Help groups across the state.

Roughly about 22.77 lakh women would benefit from the assistance provided by the scheme. This loan offered to the women would be interest-free and the amount of loan offered would vary from ₹5,000 to ₹20,000. Women availing the loans from this scheme would also have repayment cycles starting from 6 months.

A thorough breakdown of loan amounts and subsequent repayment cycles are listed here:

Documents needed to avail of the benefits offered by Kerala Sahayahastham Scheme

In order to avail the benefits of the scheme, having the following documents handy would make the procedure seamless:

  • Address proof
  • ID proof
  • Registration certificate of the Self-Help group
  • Bank account details.

What are the eligibility criteria one has to follow to avail of the benefits?

The eligibility criteria to receive financial assistance from the Kerala state government are as follows:

  • The applicant must be a permanent resident of the State of Kerala
  • The age limit of Destitute widows must be below 55 years
  • The applicant must be working in a women self-help group
  • The yearly income of the applicant should be less than ₹1 lakh
  • The applicant must have a working bank account for smooth transfer of money
  • The project will be implemented in a solo-implementary fashion or with SHGs together (in which case, there will be a maximum of 10 beneficiaries from a district).

Prime benefits from the scheme

Here are some of the major benefits from the scheme beneficiaries will get to avail:

  • The loan amount offered to group member ranges between ₹5,000 to ₹20,000
  • The 9% interest which is usually charged on such loans will be paid off by the Kerala State government.

Wrapping it up

SHGs are a platform for women and other small entrepreneurs to make a source of livelihood for themselves. The financial assistance provided by the Kerala State government can prove to be instrumental in offering the right avenues for the people of Kerala to stabilise their finances and make sure that they do not need government relief funds to get through their days.

Similar Yojanas

Schemes launched by the state government

The state governments of India are the next important government bodies right after the central government of the country. The state governments constitute 28 states and 8 union territories

India is a democratic and republic country wherein highest authorities and powers are proffered to the central government. For the state government, real executive powers are given to Chief Minister as he is responsible for heading the Council of Ministers. The state governments of India work toward internal security, such as police department, social welfare, public health betterment and other similar state-related issues. The state government of the country earns its employee income from sales tax services, stamp duty services, and from some parts of GST.

The state governments have launched a variety of schemes so far. Some of the examples are as follows:

In Andhra Pradesh, Chandranna Bima Yojana, National Energy Efficient Agriculture Pumps Program, and Smart Pulse Survey have been launched. In Assam, Mass Rapid Transit System has been recently launched. In Maharashtra, Police Pratisaad Ask services and various schemes for the betterment of farmers have been launched. In Karnataka, PM Santwana Harish Yojana, and Housing scheme for Transgenders have been launched. In Uttar Pradesh, Deen Dayal Upadhyay Gram Jyoti Yojana, Hausla Paushan scheme, and Swadhar Greh yojana have been launched.

The state government of India monitors both rural and urban development. However, it is not feasible for the state government to monitor all rural and urban local government bodies. Thus, based on the provided funding and coverage, rural and urban local entities create development plan whenever required. These government entities work in close association with planning commission and local or regional government sectors and authorities.

Apart from these schemes, the state government also ensures the effective implementation of centrally sponsored schemes in respective states.