The Kerala Government is preparing to launch an innovative micro-finance scheme in its co-operative sector for assisting citizens who have been taken for a ride by private lenders who charge huge interest rates on loans. This will help ordinary citizens get more reasonable rates on home loans according to Kadakampally Surendran, the State Minister for Co-Operation & Tourism. Co-operative banks in Kerala will be officially launching this scheme which is named as Muttathe Mulla. This will also have the backing of Kudumbashree which is the neighborhood network body for women.
According to reports, the Kerala Government has been working out these steps for tackling loan sharks for a very long time indeed. The Government will thus be chalking out this joint initiative with cooperation from Kudumbashree and cooperative banks in the State. As part of this initiative, cooperative banks will be providing loans to people at lower rates of interest. Micro-finance loans will be given to Kudumbashree at 7% interest and neighborhood network members can avail of funding at around 12% according to reports.
According to reports, several private lenders in Kerala were charging citizens anywhere between 37-72% as interest on micro-finance loans. The first phase of the Kerala Government’s scheme will officially launch on the 29th of June, 2018, in the Palakkad District.