Interest-free loans for 100K rural families of Rajasthan for non-agri work

As many as 100,000 families residing in rural areas of Rajasthan for the past five years will get interest-free loans for non-agricultural works in the year 2022-23.

The state government has set aside Rs 2,000 crore for the Rajasthan Rural Family Livelihood Loan Scheme. It will give an interest subsidy of Rs 100 crore for such kinds of loans, which will be provided by commercial banks (55,158, rural families) regional rural banks (36,741), the cooperative banks (5,949), and small finance banks (2,152).

This scheme was part of Chief Minister Ashok Gehlot’s Budget announcement.

Cooperative Minister Udailal Anjana said many families in the rural areas along with agriculture and animal husbandry were dependent on non-agriculture activities, such as handicrafts, weaving and knitting, colouring and printing, etc.

He said the scheme would help the families of small and marginal farmers and landless labourers who are doing farming as tenants, verbal leasees, sharecroppers, etc.

Besides, Rajeevika’s self-help groups, producer groups, and personal members of commercial groups will be provided loans for collective activities. A maximum of 10 members of each group would be given the loan with the maximum amount Rs 2 lakh.

The cooperative minister said the local unit of Rajeevika would select the eligible beneficiaries from these groups and recommend the committee chaired by the district collector.

The approved credit limit will be renewed every year. After the completion of one year, the beneficiary would get a fresh credit limit on depositing the outstanding amount in the account.

The state government will continue to give interest subsidies for the coming years in this scheme.