The Maharashtra government has decided to offer personal loans to prisoners for the work they do in jail. The prisoners can get up to Rs. 50,000 against their earnings from the prison activities. The state government has put forward this decision intending to improve the living standards of the prisoners’ families.
The Maharashtra State Co-operative Bank has agreed to give out loans under this scheme. The loan can be taken up to Rs 50,000 for an interest rate of 7%. Dilip Walse Patil, the Home Minister of Maharashtra said that the scheme will be implemented on a pilot basis at Yerawada Central Jail, Pune.
The order on the personal loan scheme was issued on 29.03.22, Tuesday. Further, a bank official said that there would be no need for a guarantor. The loan would be disbursed on a personal bond.This kind of loan is put under the category of “khavti” loan. The order on the personal loan scheme was issued on 29.03.22, Tuesday.
Further, a bank official said that there would be no need for a guarantor. The loan would be disbursed on a personal bond. The bank will decide the amount given to the applicant as per his/her earnings, daily wages and skills.
The decision was taken in a meeting chaired by Home Minister Patil at Sahyadri Guest House. A Government Resolution (GR) was also issued in this regard. Patil remarked while launching the scheme, “It will also be the first innovative loan scheme in the country to get a loan based on the income earned while working in a prison.
With this, a welfare scheme can come in concrete form and approximately 1,055 prisoners can benefit from the scheme. Many inmates are serving long-term imprisonment. Since most of these inmates are prominent members of the family, their families may become distraught.”
How will it work?
The loan facility will be decided only after learning about the prisoner, his/her loan limits, duration of the punishment, age, estimated annual working day, possible relief from punishment and minimum daily income. The loan will not require a guarantor. It will solely depend on the above-mentioned factors.
It will become the duty of the bank to make sure that the money is used only for the welfare of the family members and not for any other suspicious or prisoner’s personal use. The loan amount should be used on issues such as paying the fees of legal matters or anything disrupting the lives of the inmates. In addition, 1 per cent of the amount recovered by the bank from loan repayment will be given to the Prisoners’ Welfare Fund every year.
Edited by Subbuthai Padma
Published by Iram Rizvi
