The Kudumbashree mission is implementing a financial security programme for non-resident Keralites (NoRKs) who returned to the State in the wake of the COVID-19 pandemic.
PEARL (Pravasi Entrepreneurship Augmentation and Reformation of Livelihoods) is being implemented as part of the Pravasi Bhadratha Nano Programme of the Non-Resident Keralites’ Affairs (NoRKA) department.
It is estimated that more than 14 lakh emigrants returned home after losing their jobs in the wake of COVID-19. Family members of Kudumbashree neighbourhood group members or the newly formed women auxiliary groups who returned to the State following job loss are eligible for an interest-free loan to reduce their insecurity as part of the PEARL project. Family members of emigrants who died of COVID-19 can become part of the programme, as also those who have started an enterprise and want to expand it.
The loan, up to ₹2 lakh, is provided for starting micro and small enterprises from funds allocated by NoRKA ROOTS, the field agency of the NoRKA department.
Project beneficiaries are given a maximum of ₹2 lakh per individual or 75% of the total project cost of the enterprise, whichever is lower. The loan has to be repaid in equal instalments within two years of a moratorium period. If the enterprise is not started after availing interest-free loan or it stops functioning within the repayment period, the amount has to be repaid within six months. Increasing the repayment period to 36 months is also under consideration.
As many as 4,670 applications have been received, and funds released for 2,224 of them. An amount of ₹30 crore has been received from NoRKA ROOTS as the first tranche, and another ₹30 crore is expected soon.
The loan is given to the beneficiary in two instalments, first to start the business, and second after a project report scrutiny is done.
As the loan is provided on the revolving fund model, Kudumbashree officials hope to reach out to more Keralites who returned home from the loan repayments made.
