Maharashtra Jivhala Scheme

May 5, 2022

A loan scheme named Jivhala has been launched by the Maharashtra Department of Prisons for the inmates who are serving sentences in various jails across Maharashtra.

Which bank is offering this scheme?

Maharashtra State Cooperative Bank is offering this newly launched credit scheme that has been named Jivhala. This credit scheme is a first-of-its-kind scheme that has been launched for prisoners in India. The existing loan initiatives that are being provided by the banks for the inmates of the nation are for the purpose of rehabilitation only after they complete their prison terms.

Where was the pilot of this scheme launched?

The pilot for this scheme was launched for the prisoners who are in the Yerawada Central Jail, Pune. This scheme will be implemented in around sixty prisons in Maharashtra.

For whom has this scheme been launched?

This scheme has mainly been launched for all those convicted inmates who are in prison facing a sentence of more than three years. The majority of such inmates are the sole breadwinners of their families and due to them being incarcerated their families have no income sources. Therefore, this loan will be issued to the family members of such inmates in the inmates’ names.

How much loan will be provided?

In the initial phase of this scheme, a Rs 50,000 loan will be given. The interest rate that will be applicable is 7 percent. Out of the interest that will be earned by the bank, 1 percent will be contributed by the bank to the prisoners’ welfare fund. For issuing this loan no guarantor or mortgage is required. The inmates will be able to utilize this loan for the medical treatment of their family members, their children’s education, legal fees, etc.

How many loan applications are being processed in the pilot phase?

In this scheme’s pilot phase, 230 loan applications are being processed from the Yerawada Central Prison. Out of the total loan applications, 222 are from males and 8 are from females. Based on the response that will be received from the pilot project along with the inmates’ creditworthiness, the loan amount can be increased.

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