Notwithstanding the disruptions in repayments owing to the pandemic, the Kerala State Women's Development Corporation (KSWDC) has distributed ₹43 crore across five districts during the previous fiscal.
Women aged between 18 and 55 years from Ernakulam, Alapuzha, Thrissur, Kottayam, and Idukki benefitted from the various loans being sanctioned by KSWDC for income-generating projects.
"While the disruptions in repayment remains a challenge for a semi-banking institution like us, we have adopted a policy in favour of lending as part of pumping funds into the society to cushion the blow dealt by the pandemic. Except for Idukki where huge dues have piled up, we keep on lending under various schemes," said Rangan M. R., regional manager, KSWDC, Ernakulam.
KSWDC had also offered moratoriums for various periods since the pandemic to ease the repayments. A programme called Athijeevanam was also held whereby loans were extended by 18 months after a one-time settlement for dues till then. Though over 500 had applied for the scheme only about half of them availed of its benefit.
So far, the corporation has lent over ₹20 crore in the region during the ongoing financial year. While repayment has taken a hit, the number of people availing of the loans has registered a marginal increase obviously due to the impact of the pandemic.
KSWDC is yet to have offices in all districts, which would have created more visibility and awareness for its various loan schemes. Though KSWDC offers multiple loans, including individual loans of up to ₹30 lakh for five years at an interest rate of 6%, small loans up to ₹5 lakh remain the most sought after ones across the region.
Education loans up to ₹20 lakh is given for courses within the country and up to ₹30 lakh for the ones abroad at an interest rate of 3% for a term of 5 years. The repayment of the principal amount has to start within six months after the course or the first month since getting a job, whichever is earlier. Till then the beneficiaries need to pay just the interest component every six months.
KSWDC also offers loans under its microfinance scheme in tie-up with Kudumbashree for a term of 36 months. Community Development Societies can avail of loans up to ₹1.50 crore as per the recommendations of the local body concerned.
Except for loans under the microfinance scheme, all loans of KSWDC entail collateral securities.
