Rajasthan: Gehlot approves interest subsidy for first-ever women’s cooperative fund

Mr. Gehlot had announced the establishment of the financial institution run entirely by women in his 2022-23 budget speech in the State Assembly last year.

Jodhpur: Rajasthan Chief Minister Ashok Gehlot addresses the divisional level workers’ conference against the BJP and the central government, in Jodhpur, Tuesday, March 28, 2023. | Photo Credit: PTI

Rajasthan Chief Minister Ashok Gehlot on Monday approved a proposal for giving 8% interest subsidy on loans obtained by the members of women’s self help groups (SHGs) from Mahila Nidhi, the State’s first-ever women’s cooperative fund. The financial institution has been extending timely loan facility for women enterprises.

Mahila Nidhi, established in Jaipur in August 2022, is operated entirely by women and acts as a complementary body with the formal banking system. It has significantly brought down the number of loan applications by women pending in the banks, as they have been getting easy and adequate loans for their daily needs and self-employment from the fund.

The all women-run financial institution in the cooperative sector has given membership to all cluster-level federations functioning in the villages. It has been set up on the pattern of Telangana’s Stree Nidhi Credit Cooperative Federation. A memorandum of understanding was signed between the Rajasthan Grameen Ajeevika Vikas Parishad (Rajeevika) and Stree Nidhi for setting up the financial body.

Mr. Gehlot had announced the establishment of the financial institution run entirely by women in his 2022-23 budget speech in the State Assembly last year. The State government had sanctioned a grant of ₹50 crore to Mahila Nidhi for the first two years of its operations, following which the women obtained loans to start new ventures and meet the financial needs of SHGs.

While a proposal has been sent to the Centre for providing a grant of ₹110 crore, the Rajeevika has contributed ₹10 lakh to each of the 561 cluster-level federations as share capital in a phased manner. Mahila Nidhi disburses loans up to ₹40,000 within 48 hours and releases the credit of a higher amount within a period of 15 days.

Mr. Gehlot also approved a proposal for additional financial provision of ₹12 crore for Mahila Nidhi this year in pursuance of his announcement made in the 2023-24 State budget. The SHG members will get 8% interest subvention on the loans up to ₹1 lakh for a period of two years.

Considered a milestone in the State’s cooperative movement, Mahila Nidhi was started in 15 districts during its first year of operations with the emphasis on women’s empowerment through special schemes and value addition and marketing linkages for SHGs.