Rajasthan Rural Family Livelihood Loan Scheme

• 11 Oct 2022

Why In News?

• On October 10, 2022, Rajasthan Cooperation Minister Uday Lal Anjana informed that the Chief Minister has approved the implementation of 'Rajasthan Rural Family Livelihood Loan Scheme' for the families of rural areas of the state.

Key Points

• Under the Rajasthan Rural Family Livelihood Loan Scheme, interest-free loans of Rs 2,000 crore will be given to one lakh families for non-agricultural works in the year 2022-23 . Families living in rural areas of the state for the last 5 years will be eligible for this loan. This loan will be available through commercial banks, regional rural banks, cooperative banks and small finance banks. The state government will provide interest subvention of Rs 100 crore for such loans.
• Cooperative Minister Uday Lal Anjana informed that the families of small and marginal farmers and landless laborers who are doing tenants, oral lessees, sharecroppers etc., fulfilling other eligibility criteria in the scheme, will also be eligible. Apart from this, rural artisans and members of rural family living in non-agricultural work will also be eligible.
• Along with this, loans will be made available to individual members of self-help groups, producer groups and business groups of Rajivika for group activities. Individual loan will be given to a maximum of 10 members per group and the maximum loan amount will be Rs 2 lakh.
• He said that for the loan, the applicant must be a resident of the work area or district of the bank branch and his base and support base should be maintained. The family member should have a Kisan card issued by any licensed bank. Families who do not have Kisan Credit Card will be sanctioned credit cards for non-agricultural activities as new members. No processing fee will be charged from the applicant.
• Minister Anjana informed that the applicant will be sanctioned as the entire loan credit limit. The credit limit amount will be assessed keeping in view the capital requirements of the business, working capital and day-to-day needs. The sanctioned credit limit will have to be renewed every year, that is, on completion of one year, the outstanding amount will have to be deposited in the account and the credit limit will have to be renewed for the next year. For this scheme, the state government will also give continuous interest subsidy in the coming years.
• He said that a target has been set to provide interest free loans to one lakh rural households including 55 thousand 158 by commercial banks, 36 thousand 741 by regional rural banks, 5 thousand 949 by cooperative banks and 2 thousand 152 by small finance banks. The sanctioned loan amount will have to be repaid within a period of one year and the borrower can get the credit limit renewed for the next year.
• The eligible family will be selected from the rural area on the basis of the total target number allotted to the district by the District Collector. The committee headed by the District Collector will examine the eligibility criteria and send the loan application form to the concerned bank branch of the online applications received on the portal. The branch will take a decision on loan sanction in 15 days.