Kerala Sahayahastham Scheme : CM Interest Free Loans to Women SHGs

Kerala Sahayahastham Scheme 2020 to provide interest free loans to women SHGs, around 22.77 lakh women under this scheme. Kudumbashree are the beneficiaries who will avail loan b/w Rs. 5,000 to Rs. 20,000 with repayment starts from 6 months, check complete details here.

Kerala Sahayahastham Scheme

Kerala Sahayahastham Scheme

The Government of Kerala has launched the Sahayahastham Scheme 2020. The Chief Minister’s loan scheme provides interest free loans to women’s self-help groups (SHGs). About 22.77 lakh women in the state are already earning Rs. Rs. 2000 crore to Rs. The scheme was launched with the aim of helping those who lost their livelihood due to the outbreak of the Kovid-19 epidemic.

1.95 lakhs are members of the Neighborhood Group (NHG) under Kudumbashree, the women beneficiary of the Kerala Sahajyasham Scheme 2020. It may be recalled that the Kudumbashree government has a poverty alleviation and women empowerment program.

Under the Sahayahastham scheme in Kerala, participating banks lend to the NHG and the government pays the 9% interest charged by the banks. 40% of lenders are primary agricultural credit cooperatives and the remaining 60% are lenders scheduled and private banks.

Highlights of Kerala Sahayahastham Interest Free Loan Scheme

Name of the Scheme
Kerala Sahayahastham Scheme
To provide Interest Free Loans to Women SHGs
Major Beneficiaries
Members of 1.95 lakh Neighbourhood Groups (NHGs) under the Kudumbashree
Loan Amount
Rs. 5,000 to Rs. 20,000
Interest Rate
9% interest which would be borne by the state government
Repayment of Loan Amount
6 months after sanctioning of loan and has to be completed in 3 years
Primary agricultural credit cooperative societies, Scheduled and Private banks
Total No. of Beneficiaries   
22.7 lakh women
Total Allocation
Rs. 2000 crore

CM Interest Free Loan Scheme for Women SHGs Details

Important features of this CM loan scheme for women self help groups: –

  • Under the Sahayahastham Scheme, the government provides interest-free loans to women’s self-help groups.
  • Loans are provided to neighborhood groups (NHGs) through participating banks.
  • The Kerala State Government pays 9% interest charged by banks.
  • Under Kudumbashree, 1.95 lakh NHG members are the main beneficiaries of the Chief Minister’s interest-free loan scheme for women.
  • The loan amount per group member is b / w Rs. 5,000 and Rs. 20,000.
  • Repayment of interest free loans under Sahyastam scheme starts after 6 months of approval and should be completed within 3 years.
  • About 22.77 lakh women in Kerala have already availed the Chief Minister’s loan scheme.
  • About 40% of the loans are provided by primary agricultural credit cooperatives and the remaining loans are provided by scheduled and private banks.
The disbursement of funds under Sahyastham Scheme 2020, which was launched in April, is almost complete. The loans given under this Chief Minister interest free loan scheme to women self help groups are basically loans. This amount of assistance is intended to help those who have lost their jobs or livelihood opportunities due to the COVID-19 pandemic.

Repayment Track Record of NHGs

The surrounding groups have a reliable track record of repaying the amount of loan they received. There are over 3 lakh NHGs under Kudumbashree, with an average of Rs. 4.5 lakhs. The repayment rate is more than 98% due to the joint responsibility of the group members. Thiruvananthapuram topped the list of Kerala districts with 2.9 lakh borrowers belonging to about 24,000 groups. This is followed by Thrissur with 2.56 lakh members and 20,500 groups.

The Kerala govt. will incur Rs  350 crore as interest subvention for the Sahayahastham Scheme. in the 2018 financial year the state govt. had rolled out the Resurgence Kerala loan scheme to help those affected by the floods.The 4-year loan has a 98% repayment rate and the state government spends about Rs. 300 crore to Rs. Under this scheme Rs. 1,750 crore to 1.95 lakh members of 26,000 SHGs.

  • What is the Sahayahastham scheme?
  • Government of Kerala in this scheme provides interest free loans to women’s self-help groups (SHGs).
  • What is the loan amount under Chief Minister’s Interest Free Loan Scheme for Women’s Self Help Groups?
  • Rs. 5,000 to Rs. 20,000
  • Who are the main beneficiaries of the NHG loan scheme?
  • Under Kudumbashree, 1.95 lakh members of neighborhood groups (NHGs), or about 22.77 lakh women, are the main beneficiaries.
  • What is the interest rate for a loan under Sahayahastham?
  • The loan is given at an interest rate of 9%, which is paid by the state government and the beneficiaries are not required to pay any interest on the loan amount.
  • An interest free loan is available in Kerala
  • An individual can get loans from primary agricultural credit cooperatives, scheduled and private banks
  • When the loan starts to repay
  • The loan must be completed within 3 years.

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