Over 5,000 flood-hit neighbourhood groups (NHG) in the district are set to get ₹10 lakh each under the State government’s Resurgent Kerala Loan Scheme (RKLS) in a fortnight.
Out of the 22,398 NHGs in the district, the district Kudumbasree Mission had identified 8,206 NHGs as flood-affected. So far, 5,438 NHGs have applied under RKLS, out of which loan has been distributed to 244 NHGs. With not all flood-hit NHGs in need of the assistance, the Kudumbasree Mission is expecting only a few more applications to be filed by Monday, which has been set as the tentative deadline for applications.
“Banks are in the process of organising loan melas in the limits of various community development societies (CDSs) to distribute loans to the remaining applicants in the next couple of weeks. Some applications had to be returned for corrections, which led to slight delay.
All nationalised banks and especially the Union Bank, which is the district lead bank, are actively participating in the scheme,” S. Renjini, Assistant District Mission Coordinator, told The Hindu .
Each NHG comprises 10 to 20 members and each member is eligible for a maximum assistance of ₹1 lakh under the RKLS, though the individual component will be decided after internal consultations depending on the needs of each member. Members will have to fill the designated application forms and submit them with the area development societies concerned, which, after a preliminary verification, will forward them to the respective CDSs. The CDSs will undertake a final verification and submit the applications to banks.
The RKLS is aimed at providing immediate assistance to NHG members who have lost small livelihood means, household appliances and suffered slight damage to their houses.
The NHGs will be eligible for the ₹10 lakh assistance under the RKLS, after deducting the amount outstanding against other bank loans they had previously taken.
For instance, if a NHG had availed a bank loan for ₹3 lakh and repaid ₹1 lakh, then they would be eligible for a total assistance of ₹8 lakh under RKLS, after deducting the outstanding ₹2-lakh towards the previous bank loan.
RKLS loan is being given by banks for a four-year-tenure with a moratorium for the initial nine months. “However, we have advised NHGs to start collecting at least a negligible amount towards repayment from next month onwards so that they are not faced with a heavy burden when the repayment cycle sets in nine months later,” said Ms. Renjini.
