Microfinance delivery at doorstep


Cooperation Department’s ‘Muttathe Mulla’ to be piloted in Palakkad

A microfinance scheme will be rolled out on a pilot basis in Palakkad district by the Cooperation Department in association with the Kudumbasree Mission to check exploitation of the public by private microfinance companies and loan sharks.

Under the scheme to be executed through Primary Agricultural Cooperative Societies, ₹1,000 to ₹25,000 will be provided as loan to an individual for a maximum of 52 weeks.

12% interest

Of the 12% interest to be levied, 9% will go to the primary cooperative societies, and 3% to the Kudumbasree.

The Kudumbasree workers will disburse the loan at the doorstep of the beneficiary and the repayment, along with interest, will be collected from the house weekly, Minister for Cooperation Kadakampally Surendran told a press meet here on Sunday.

For a ₹1,000 loan, a sum of ₹1,120 will have to be repaid in equal instalments in 52 weeks.

Each Kudumbasree unit will get a cash credit of ₹10 lakh at an interest of 9% to be disbursed as loan. The loan of those defaulting for more than three months will be converted as loan of primary agricultural societies.

The loans given through Kudumbasree will not come under the government’s Risk Fund Scheme, which meets the loan liability of society members who die during pendency of loans.

Launch tomorrow

Named ‘Muttathe Mulla,’ the scheme will be launched on June 26 by Mr. Surendran at a function to be organised by the Mannarcaud Rural Cooperative Bank at Thenkara.

The Minister said the scheme would be helpful to the people as loan sharks were now charging 24% to 200% interest.

Besides, the scheme would help create financial literacy, Mr. Surendran added.

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Printable version | Dec 12, 2019 1:36:06 PM |

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