Rajasthan Sahkari Gramin Parivar Aajeevika Rin Yojana

Scheme Introduction: A Brief Overview

The Rajasthan Sahkari Gramin Parivar Aajeevika Rin Yojana is a flagship loan scheme launched by the Government of Rajasthan under Budget Announcement for the financial year 2023–24. The scheme aims to strengthen the rural economy by providing interest-free loans to eligible rural families through the cooperative banking system.

Many rural families depend on agriculture for their livelihood. However, income from farming alone is often not sufficient. To create additional sources of income, the Government introduced this scheme to support non-farm livelihood activities such as handicrafts, tailoring, weaving, dyeing and printing, small manufacturing units, retail shops, and other village-based businesses.

Under the scheme, eligible beneficiaries can obtain an interest-free loan ranging from ₹25,000 to ₹2,00,000 through District Central Cooperative Banks. The loan is sanctioned as a renewable credit limit instead of a traditional term loan. If the borrower repays the outstanding amount within one year and renews the credit limit on time, the Rajasthan Government pays the interest subsidy to the bank, allowing the beneficiary to enjoy an interest-free loan.

The scheme also supports small and marginal farmers, landless agricultural labourers, rural artisans, craftsmen, shopkeepers, Rajeevika Self Help Group members, producer groups, and other eligible rural families who wish to establish or expand income-generating activities.

The Cooperation Department, Government of Rajasthan, is the nodal department for implementing the scheme, while the Rajasthan State Cooperative Bank Ltd. and the District Central Cooperative Banks (DCCBs) are responsible for sanctioning and disbursing loans. Applications are submitted online through the Rajasthan Government portal and are verified by a district-level committee before being forwarded to the concerned cooperative bank branch for final approval.

Objectives

The scheme has been introduced to:

• To provide interest-free financial assistance to eligible rural families for starting or expanding non-farm livelihood activities.
• To encourage self-employment opportunities in villages and reduce dependence on agriculture alone.
• To improve the income of rural households through sustainable business activities.
• To promote traditional occupations such as handicrafts, weaving, tailoring, dyeing, printing, village shops, and small rural industries.
• To strengthen the cooperative banking system by making affordable credit available through District Central Cooperative Banks.
• To help rural families obtain business loans without paying interest when repayment and annual renewal conditions are fulfilled.
• To improve financial inclusion by enabling eligible rural families to access formal credit instead of relying on private moneylenders.
• To encourage entrepreneurship and create employment opportunities within rural areas.

Scheme Benefits

Eligible beneficiaries receive several benefits under the scheme, including:

• Interest-free loans from ₹25,000 to ₹2,00,000 for approved non-farm livelihood activities.
• The Rajasthan Government provides an interest subsidy of up to 10.25%, subject to timely repayment and annual renewal of the credit limit.
• The loan is provided through District Central Cooperative Banks, making formal credit accessible in rural areas.
• No processing fee is charged from the borrower for sanctioning the loan.
• The loan is sanctioned as a renewable credit limit, allowing beneficiaries to continue accessing funds after successful annual renewal without applying for a completely new loan.
• Financial support is available for a wide range of income-generating activities, including handicrafts, small manufacturing units, tailoring, weaving, dyeing, printing, retail shops, and similar businesses.
• Eligible members of Rajeevika Self Help Groups (SHGs), Producer Groups, and Business Groups can also receive loans under the scheme as per the prescribed guidelines.
• The scheme helps rural families generate additional income and strengthen their long-term livelihoods.
• Timely repayment allows beneficiaries to continue enjoying interest-free credit in future years, subject to renewal by the bank.

Eligible Activities Under Rajasthan Sahkari Gramin Parivar Aajeevika Rin Yojana

The Rajasthan Sahkari Gramin Parivar Aajeevika Loan Yojana mainly supports non-farm livelihood activities that help rural families generate additional income. The loan can be used to start a new business or expand an existing one, provided the activity is eligible under the scheme and approved by the concerned cooperative bank.

Some of the major activities covered under the scheme include:

• Handicrafts and traditional crafts
• Small manufacturing units
• Tailoring and garment stitching
• Weaving and spinning
• Dyeing and printing work
• Village retail shops
• Rural service-based businesses
• Cottage industries
• Other eligible non-farm income-generating activities approved by the bank

Apart from these activities, beneficiaries can also avail loans under eligible non-farm sector schemes of the Government of India, Government of Rajasthan, or NABARD. However, under this scheme, the Government's interest subsidy is calculated only on a maximum loan amount of ₹2 lakh.

Loan Amount Under Rajasthan Sahkari Gramin Parivar Aajeevika Rin Yojana

Eligible beneficiaries can obtain a loan ranging from ₹25,000 to ₹2,00,000.

The loan is sanctioned in the following categories:

The exact loan amount is decided by the cooperative bank after assessing the applicant's proposed business, investment requirements, working capital needs, and repayment capacity.

Unlike a conventional term loan, the entire sanctioned amount is provided as a renewable credit limit, allowing the borrower to use the funds as required for the approved business activity.

Interest Subsidy Under the Scheme

One of the biggest advantages of this scheme is the interest subsidy provided by the Rajasthan Government.

Normally, the bank charges interest on the loan at a rate of up to 10.25% per annum. However, if the borrower follows all the conditions of the scheme, the Government pays this interest directly to the bank.

This means the borrower does not have to pay any interest on the loan.

The interest subsidy is available only when:

• The borrower repays the outstanding loan amount within one year.
• The credit limit is renewed on time.
• The borrower complies with all the terms and conditions of the scheme.

The Government has also made provisions to continue providing interest subsidy in future years through the State Budget, subject to the scheme's continuation.

How the Interest-Free Credit Limit Works

Many people think this scheme provides a normal business loan that is repaid in monthly instalments over several years. However, this scheme works differently.

The bank sanctions a renewable credit limit instead of a one-time term loan.

This means you can use the approved loan amount whenever you need it for your business. At the end of one year, you must repay the outstanding amount and renew your credit limit. Once the renewal is completed, you can continue using the credit limit again for your business.

Simple Example

Suppose the bank approves a ₹2,00,000 credit limit.

• You borrow ₹1,20,000 to start a tailoring business.
• You use the money to purchase sewing machines and raw materials.
• Before one year is completed, you repay the outstanding ₹1,20,000 to the bank.
• After repayment, the bank renews your credit limit for the next year.

Since you repaid the loan on time and renewed the credit limit:

• You do not pay any interest.
• The Rajasthan Government pays the eligible interest subsidy to the bank.
• Your credit limit becomes available again for future business requirements.

This allows eligible beneficiaries to continue accessing business finance without submitting a completely new loan application every year, subject to the bank's renewal and the scheme rules.

What Happens if the Credit Limit is Not Renewed on Time?

If the borrower does not repay the outstanding amount after one year and fails to renew the credit limit within the prescribed period:

• The borrower loses the interest-free benefit for the delayed period.
• The bank can charge its normal rate of interest.
• The bank may also recover up to 2% additional penal interest for the period of default.

Therefore, timely repayment and annual renewal are essential to continue receiving the benefits of the scheme.

Eligibility Criteria

Applicants must satisfy the following eligibility conditions to receive benefits under the Rajasthan Sahkari Gramin Parivar Aajeevika Rin Yojana.

• 1. Residence Requirement
  • The applicant's family must have been residing in a rural area of Rajasthan for at least the last five years.
  • The family must submit valid proof of continuous rural residence for the prescribed period.
  • For the purpose of this scheme, a family includes the members recorded in the Jan Aadhaar Card, such as:
  • Husband and wife
  • Dependent parents
  • Unmarried sons and daughters below 25 years of age
  • Widowed daughters
  • Divorced daughters
  • Deserted daughters
• 2. Eligible Rural Families
• The scheme is available to eligible rural families engaged in agriculture as well as non-farm occupations.
  • Eligible applicants include:
  • Small farmers
  • Marginal farmers
  • Landless agricultural labourers
  • Tenant farmers
  • Sharecroppers
  • Oral tenants
  • Rural artisans
  • Craftsmen
  • Rural shopkeepers
  • Families engaged in other eligible non-farm livelihood activities
• 3. One Applicant Per Family
  • Only one adult member from a family can receive a loan under this scheme.
  • The family is identified based on the details available in the Jan Aadhaar Card.
• 4. Area of Business
• The applicant must:
  • Be a resident of the concerned bank branch's service area or district.
  • Carry out the proposed business within the service area of the selected cooperative bank branch.
• 5. Aadhaar or Jan Aadhaar
• The applicant must possess:
  • Aadhaar Card, or
  • Jan Aadhaar Card.
• 6. Credit History
  • The applicant should have a satisfactory credit record.
  • The bank verifies the applicant's credit history through RBI-authorised Credit Information Companies before approving the loan.
  • Applicants having an adverse credit history may not be eligible under the scheme.
• 7. Credit Card Requirement
  • The family should possess a valid credit card issued by a licensed bank.
  • If the family does not already have a suitable credit card for eligible non-farm activities, the cooperative bank may issue one as per the scheme guidelines.

Who Cannot Apply?

Generally, the following applicants are not eligible:

• Families that do not satisfy the five-year rural residence requirement.
• More than one adult member from the same family.
• Applicants with an unsatisfactory credit history.
• Applicants whose proposed business is outside the bank's service area.
• Applicants who fail to meet the eligibility conditions prescribed under the scheme

Required Documents

Applicants are required to submit the prescribed application form along with the necessary documents. The cooperative bank may ask for additional documents depending on the nature of the proposed business.

The commonly required documents include:

• Identity Proof
  • Aadhaar Card
  • Jan Aadhaar Card (where applicable)
  • Address Proof
  • Any valid document showing rural residence in Rajasthan, such as:
  • Ration Card
  • Voter ID Card
  • Land records
  • Other documents accepted by the bank
• Residence Proof
• Proof showing that the applicant's family has been residing in a rural area of Rajasthan for at least five years.
• Business Documents
  • Details of the proposed business
  • Estimated project cost
  • Cost quotations
  • Machinery or equipment quotations (where applicable)
  • Working capital requirements
• KYC Documents
  • The applicant must submit all KYC documents in original along with self-attested photocopies for verification.
• Bank Documents (After Loan Approval)
• Once the loan is sanctioned, the borrower may be required to execute the following documents:
  • Loan Acceptance Letter
  • Loan Agreement
  • Demand Promissory Note
  • Time Promissory Note
  • Hypothecation Deed
  • Guarantee Bond (if applicable)
  • Utilisation Certificate
  • Continuity Letter
  • Post-dated Cheques
  • Any other documents required by the concerned cooperative bank
• The bank may request additional documents depending on the approved project and internal lending requirements.

Steps to Apply

Eligible applicants can apply online through the SSO Rajasthan Portal. Before starting the application, keep all required documents ready in digital format and ensure that your Aadhaar, Jan Aadhaar, and bank account details are correct.

Follow the steps below to submit your application.

• Step 1: Visit the SSO Rajasthan Portal

  • Open any web browser on your mobile phone or computer and visit the official SSO Rajasthan Portal.

  

  • Log in using your SSO ID, password, and captcha code.
  • If you do not have an SSO ID, create one first before proceeding with the application.
  • After logging in, open the Citizen Apps section.
  • In the search box, search for "Sahkari Gramin Parivar Aajeevika Loan Yojana" and click on the scheme when it appears.

  

  • Next, click on "Apply for Loan" to start your application.

  

• Step 2: Fill in the Applicant Details

• If you are a farmer, first indicate whether you possess agricultural land.
• You may be asked to provide details such as:
• Total land holding
• Irrigated and unirrigated land details
• Kisan Credit Card (KCC) number (if available)
• Name of the bank that issued the KCC
• Branch name
• Existing loan amount (if applicable)
• If you do not have a KCC or the above information is not applicable, simply choose "No."
• After that, enter your personal information, including:
• Applicant's Name
• Date of Birth
• Father's Name
• Category
• Marital Status
• Gender
• Minority Status Mobile Number
• Disability Status
• Email Address
• Annual Income
• Educational Qualification Aadhaar Number
• PAN Number (if available)
• After entering all the details, proceed to the next step.
• Step 3: Enter Business and Address Details.
• Provide complete information about the business for which you are seeking the loan.
• Enter:
  • Proposed business or occupation
  • Experience in the selected business
  • District
  • Block
  • Gram Panchayat
  • Complete residential address
  • PIN Code
  • After verifying the information, click Save & Next.
• Step 4: Enter Project Details
  • Now provide complete details of your proposed project.
  • The application will ask you to mention:
  • Type of business
  • Estimated project cost
  • Cost of machinery, equipment, raw materials, or other business requirements
  • Working capital requirement Item-wise cost details
  • Ensure that the project cost and quotations are realistic because the bank will verify these details during loan
  • processing.
  • After completing this section, click Save & Next.
• Step 5: Select the Cooperative Bank
  • The portal will display your bank account information.
  • Carefully verify the details before proceeding.
  • Then select:
  • District
  • District Central Cooperative Bank
  • Concerned Bank Branch
  • Finally, enter the loan amount you wish to apply for.
  • Eligible applicants can request a loan between ₹25,000 and ₹2,00,000, depending on their business requirements
  • and eligibility.
  • Click Save & Next to continue.
• Step 6: Enter Guarantor Details
• If required under the scheme, provide details of two guarantors.
• The following information is generally required for each guarantor:
  • Name
  • Aadhaar Number
  • Mobile Number
  • Upload clear PDF copies of the guarantors' Aadhaar Cards.
  • The bank may verify the creditworthiness of both guarantors before sanctioning the loan.
  • After completing this section, click Save & Next.
• Step 7: Upload Documents and Submit the Application
• Upload all the required documents in the prescribed format.
• These generally include:
  • Proof of five-year rural residence in Rajasthan
  • Aadhaar or Jan Aadhaar
  • PAN Card (if applicable)
  • Business quotations
  • Project cost estimates
  • Working capital documents
  • Other documents required by the cooperative bank
• After uploading the documents:
  • Read the declaration carefully. Tick the declaration checkbox.
  • Click Submit.
• Your online application will be submitted successfully.
• It is advisable to download or print the acknowledgement for future reference.

What Happens After You Submit the Application?

After the online application is submitted, it is forwarded to the District-Level Committeefor verification.

The committee examines:

• Eligibility conditions
• Documents submitted by the applicant
• Proposed business activity
• Other prescribed criteria

1. Eligible applications are then forwarded to the concerned District Central Cooperative Bank branchselected by the applicant.
2. According to the scheme guidelines, the bank is expected to take an appropriate decision regarding loan approval within 10 daysafter receiving the application from the committee.
3. If additional documents or verification are required, the bank may contact the applicant.
4. Once the verification process is completed and the loan is sanctioned, the applicant will be required to complete the necessary banking formalities before the loan amount is released.

Loan Repayment and Annual Renewal

The Rajasthan Sahkari Gramin Parivar Aajeevika Loan Yojana provides financial assistance as a renewable credit limitinstead of a conventional business loan with fixed monthly EMIs. To continue receiving the interest-free benefit, borrowers must follow the repayment and renewal rules prescribed under the scheme.

Repayment of the Loan

The borrower must repay the entire outstanding loan amount before the completion of one yearfrom the date of loan disbursement.

Once the outstanding amount has been repaid, the borrower can apply for the renewal of the credit limit for the following year.

Annual Renewal of the Credit Limit

After successful repayment, the cooperative bank may renew the sanctioned credit limit, subject to:

• Timely repayment of the outstanding loan amount.
• Compliance with the scheme guidelines.
• The bank's assessment and approval.

After renewal, the borrower can continue using the sanctioned credit limit for eligible business activities without submitting a fresh loan application.

Interest-Free Benefit

The Rajasthan Government provides an interest subsidy of up to 10.25%directly to the lending cooperative bank on behalf of eligible borrowers.

The borrower can continue to enjoy the interest-free loan facility if:

• The outstanding loan amount is repaid within the prescribed period.
• The credit limit is renewed every year.
• All terms and conditions of the scheme are fulfilled.

Delay in Repayment or Renewal

If the borrower does not repay the outstanding amount or fails to renew the credit limit within the prescribed time:

• The borrower will lose the interest-free benefit for the period of default.
• The bank may charge its normal rate of interest on the outstanding amount.
• The bank may also recover up to 2% penal interestfor the delayed period.

To continue receiving the benefits of the Rajasthan Sahkari Gramin Parivar Aajeevika Loan Yojana, borrowers should ensure timely repayment of the outstanding amount and renew the credit limit every year.

Security and Guarantor Requirements

The cooperative bank follows certain security norms before sanctioning the loan.

• Hypothecation of Assets
  • The movable and immovable assets created from the loan amount may be hypothecated or charged in favour of the lending bank as security.
• CGTMSE Coverage
  • Loans sanctioned under this scheme are intended to be covered under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
  • The CGTMSE guarantee fee, including the applicable GST, is borne by the Rajasthan Government along with the interest subsidy, wherever applicable.
• Two Guarantors
  • If the concerned cooperative bank is not recognised as a Member Lending Institution (MLI) under CGTMSE, the applicant must provide two financially sound guarantors acceptable to the bank.
  • Before approving the loan, the bank verifies the credit history of both the applicant and the guarantors through RBI-authorised Credit Information Companies.
• Other Security Conditions
  • The borrower may also be required to:
  • Submit post-dated cheques.
  • Become a nominal member of the cooperative bank (along with the guarantors, where required).
  • Execute all prescribed loan documents before disbursement.

Special Provisions for Rajeevika Self Help Groups (SHGs)

The scheme contains separate provisions for financing members of Rajeevika Self Help Groups (SHGs), Producer Groups, and Business Groups.

The important provisions are:

• Members of eligible Rajeevika groups can receive individual loans for approved group-based livelihood activities.
• A maximum of 10 members from one eligible group can receive loans under the scheme.
• The maximum loan limit for a group is ₹5 lakh.
• Eligible beneficiaries are identified and recommended by the local Rajeevika unit.
• The recommendation is forwarded to the District-Level Committee headed by the Managing Director of the District Central Cooperative Bank.
• Rajeevika also assists the lending institution in monitoring loan utilisation and recovery.

Important Conditions

Applicants should carefully understand the following conditions before applying:

• Only one adult member from a family can receive the benefit under the scheme.
• The applicant must satisfy all eligibility conditions prescribed under the scheme.
• The proposed business should be located within the service area of the selected cooperative bank branch.
• The bank verifies the applicant's credit history before approving the loan.
• The applicant should not have an adverse credit record.
• Normally, the applicant should not have more than three active loans, including the proposed loan, as per the credit report considered by the bank.
• All information and supporting documents submitted with the application must be accurate.
• The borrower must use the loan only for the approved business purpose.
• If the bank finds that the loan has been misused or utilised for unauthorised purposes, it may demand immediate repayment of the outstanding amount in accordance with applicable rules.
• The Branch Manager has the authority to approve or reject the loan application after examining the applicant's eligibility, creditworthiness, documents, and compliance with the scheme guidelines.
• The Cooperation Department, Government of Rajasthan, reserves the right to amend or modify the scheme guidelines from time to time.

Relevant Links

• Official Portal of SSO Rajasthan
• Guidelines of the Rajasthan Sahkari Gramin Parivar Aajeevika Rin Yojana

Contact Information

Registrar, Cooperative Societies

• Nehru Sahkar Bhawan, Bhawani Singh Road, Jaipur, Rajasthan
• Email: [email protected]
• Phone: 01412740045, 01412740737

The Sirohi Central Co-operative Bank Ltd., Sirohi (Rajasthan)

• Address: National Highway No. 14, Bypass Road, CCB Chouraha, Sirohi, Shivganj Branch
• Phone Numbers:
• Managing Director: 02972222349
• Bank Office: 02972221343
• Email: [email protected]