Kudumbashree to impose regulations on members for taking low-interest loans

kudumbashree

KOCHI: Kudumbashree is trying to put an end to those who take loans in the name of the organizations. The data on women’s source of income, deposits, expenditure and loans are being collected. The data is being collected through ayalkkoottams. The data will be evaluated after collecting it. Nationalised banks and private finance agencies are behind ayalkkoottams offering loans to women. Kudumbashree has decided to intervene in this matter following this.

The Kerala government had launched an ambitious micro-finance programme in the co-operative sector to help people, who were exploited by private financiers charging exorbitant interest rates for loans. The initiative is to help ordinary people who are being exploited by private financiers charging exorbitant interest rates for loans.

Co-operative banks had come up with the scheme, titled 'Muttathe Mulla', with the support of women neighbourhood network - 'Kudumbashree’. The government is taking steps to regulate loan sharks through a joint initiative of cooperative banks. Under the initiative, loans would be provided at lower interest rates, he said. Cooperative banks would give away micro-finance loans to 'Kudumbashree' at an interest rate of seven per cent, which members of the neighbourhood network can avail at an interest rate of 12 per cent. Many private money lenders were charging 37-72 per cent interest for micro-finance loans.