Karnataka Kayaka Yojana

The Chief Minister of Karnataka has introduced a zero interest (interest-free)/ subsidised loan scheme for women Self-Help Groups (SHGs) in the state. The State Government provides loan up to Rs. 10 lakh to SHGs from cooperative banks. Karnataka Kayaka Yojana declared by the Chief Minister in the state budget 2018-19, focuses on empowering women in the State to create more job opportunities. The scheme is one of the many people and social security schemes that the State Government has initiated for the development of skills and entrepreneurs. This article portrays the highlights of Karnataka Kayaka Yojana.

Scheme Objective

Here they are objectives of Karnataka Kayaka Yojana.

To empower women and self-help groups.
To provide financial assistance.
To create self-employment and empowerment opportunities for women.
To enhance SHGs.
To influence women on entrepreneurship.

Overview of the Karnataka Kayaka Yojana

In the State's budget 2018-19, the Chief Minister has announced a project that benefits women in different fields. The scheme offers interest-free loans to women Self Help Groups (SHGs), with loans up to Rs. 5 lakh subjected to 0% interest and loans above Rs. 10 lakhs subjected to 4% interest rates. This loan scheme of Karnataka targets the progress of financial and trade in the state.

Implementation of Karnataka Kayaka Yojana Loan Scheme

Karnataka Kayaka Yojana is a comprehensive plan for women empowerment, enhancement of entrepreneurship and skill development. The scheme will be implemented in different stages starting from this year. In the initial phase, all urban areas will be covered along with 3000 SHGs that will be provided with loan benefits. On the implementation of the scheme, eligible SHGs can avail interest-free loans. The State Government plans to purchase products that are prepared by women associations under this scheme. The Government sets up training camps to help them in developing various products and markets them under the said scheme. Moreover, the Government also make sure that the marketing facility is applied to all the prepared products.

Eligibility for Karnataka Kayaka Yojana

Women belonging to the following category are eligible to apply for this scheme.

The applicants have to be citizens of the state.
Only women authorised self-help groups and SHGs located within the state borders are eligible.

Benefits of Karnataka Kayaka Yojana

The following advantages can be availed by enrolling in the scheme.

Loans can be availed easily by women.
Interest-free loans are provided for a sum of Rs. 5 lakh.
Low-interest loans or subsidised loans are applicable at an interest rate of 4% for loans between Rs. 5 lakh to Rs. 10 lakh.

Highlights of Karnataka Kayaka Yojana

Given below are the features and highlights of Karnataka Kayaka Yojana.

Development of SHGs

Kayaka scheme is applicable for the SHGs that are located in the State. The SHGs utilises the fund to increase the skill development and entrepreneurship amongst the citizens.

Easy Availability of Loan

Once this scheme is implemented, SHGs can easily receive loans from banks and enhance their activities for the improvement of skill development among the people.

Loan Amount

The State Government provides loans between Rs. 1 lakh and Rs. 10 lakhs to the SHGs.

Interest on Credit

For loan amount that is below Rs. 5 lakhs, there will no interest applicable under the Karnataka Kayaka Yojana Loan Scheme. For loan amount that is between Rs. 5 lakh to Rs. 10 lakh, the interest rate would be charged at 4% interest.

Skill Training

The skill training offered by the scheme assists small businesses and business women. This contributes to the overall development of small and marginal people in the industry.

Application Procedure

The scheme has been approved, and the details regarding the application procedure are not disclosed. However, an online application procedure is facilitated for this scheme. Once all the details are confirmed, applicants can apply for the project in the State Portal.