The Kerala Government is planning to launch Muttathe Mulla a small loans scheme to the people of Kerala. The objective of the scheme is to provide micro-finance and help who are exploited by the private financiers charging high interest rates for loans.
The scheme is announced by the state Minister for Co-Operation and Tourism, Kadakampally Surendran. The coperative banks in the Kerala will implement Muttathe Mulla scheme along with the support of women neighbourhood network Kudumbashree.
What is Muttathe Mulla Scheme? The Government of Kerala scheme to provide loans at the lower interest rate of 7%
Muttathe Mulla Objectives:
- To provide small loans to the people of Kerala at very low interest rates
- To help people avoid taking loans from private financiers charging high interest rates
- To strengthen cooperative banks in the state
Muttathe Mulla Loan Interest Rates:
- Cooperative banks micro-finance (loans) will be available at the interest rate of 7%
- Members of the neighbourhood network can avail at an interest rate of 12%
Private money lenders charge the hefty interest rate of 37-72 percent interest for micro-finance loans. The scheme will be implemented in multiple phases, the first phase starts from 29th June in Palakkad district.