UP launches interest-free loans of up to ₹1 lakh for SHG women

Uttar Pradesh has started the Mahila Udyami Credit Yojana, which gives interest-free loans of up to ₹1 lakh to rural women who are members of self-help groups. Around one crore SHG women are expected to get the benefit.

Money comes in three instalments: ₹20,000 first, then ₹30,000, then ₹50,000. Each woman also gets a credit card of her own to draw the funds and pay for business work. Borrowers get up to three years to use the money and repay it.

Who can apply

• Must be an active member of a registered self-help group linked to the State Rural Livelihood Mission.
• Must be a permanent resident of Uttar Pradesh.
• Loan has to be used to start a small business or expand an existing household business.

Work can be tailoring, handicrafts, pickle-making, a small retail shop or dairy farming. For bigger service and manufacturing projects, the state runs Mukhyamantri Yuva Udyami Vikas Abhiyan, which gives interest-free, collateral-free loans of up to ₹5 lakh.