Government offers Rs 100 crore loan guarantee for women’s corporation

The Indian Government has announced an additional loan guarantee of Rs 100 crore for Kerala’s state women’s development corporation. Health minister K K Shailaja revealed the new provision, stating that it was part of the Government’s efforts towards offering more loans to women to promote entrepreneurial ventures.

The guarantee, backed by the Government, will allow these individuals to obtain greater amounts of loans from the National Backward Classes Finance and Development Corporation (NBCFDC). Earlier, the organisation only offered a guarantee of Rs 140 crore while applying for loans from national financial corporations.

However, the Government has now enhanced the guarantee with an additional Rs 350.56 crore. According to the minister, the organisation has also started providing loans to women from scheduled tribes, in order to encourage self-employment.

As a result, the corporation will now be able to obtain higher amounts of loans, which can be passed off to potential women entrepreneurs at reduced interest rates. The state women’s development corporation is utilised by several agencies of the Central and state governments to facilitate financial empowerment of women in the state.

While the organisation has been providing loans at affordable interest rates for the last 30 years, during the tenure of the current government, it has also been able to offer a wide variety of services to as many as six lakh women, through many different schemes.