The central government is working on a scheme to provide interest free loans to women run SHGs (Self Help Groups). This is done in order to empower women to buy vehicles and hire drivers. These vehicles will ferry in the remotest places, which are not yet connected by organised transportation.
According to sources in the government, this scheme will enable the villagers to remain connected with the nearby towns and cities. Along with providing a transportation facility, this will also enable farmers to carry their produced crops to the bigger market to sell. This scheme is based on a study done in Chhattisgarh.
This scheme might be officially announced on Independence Day by prime minister Narendra Modi. Under this scheme, the respective governments will provide interest free loans to women self help groups to buy 6-8 vehicles which will have capacity to cover n entire administrative block.
According to an official, the scheme was made interest free because the model was not viable after keeping a 12% interest rate on the given loan. An average of 6-7 rounds by the vehicles with a capacity of 10-15 passengers will enable SHGs to repay the loan along with saving money for their own expenses after paying for fuel and drivers.
With this scheme, the government is planning to cover 7 crore rural households in 6000 blocks in next 10 years. This will be first launched in 250 blocks of Chhattisgarh, Bihar, UP, Odisha and Jharkhand.