Zero-interest loans by credit society to buy grains

Vadodara: At a time when many are struggling to make ends meet due to Covid-19 outbreak and lockdown, a credit society in Dahod has come up with a scheme to ensure that all its members buy grains for the entire year. The interest-free loan has come as a major relief to members of the society who were facing financial woes.
Shri Ram Cooperative Credit Society (SRCCS) in Dahod realized that this was the season when most purchased grains and even spices and stored them for the year. Due to lockdown and financial constraints, many had not started doing so.
The society came up with a novel ideal that will benefit about 12,000 members of 5,000 households in Dahod. About 2,000 members have already queued up to take the benefit of the scheme.
SRCCS chairman Dilipsinh Chauhan said, “This will ensure that even in the most difficult situation, our members do not run out of grains and other food material. We calculated that a family of five would need Rs10,000 to Rs11,000 to purchase grains and even spices for the entire year. Against this, we decided to give them a loan of Rs12,000.”
The loan is given jointly in the name of husband and wife. “This ensures that both know about the loan and the woman can ensure the money is used for the purpose it is meant for,” said Chauhan.
He said after one month, the loan will be payable in instalments of Rs1,100 per month. “At the end of one year, the member would have deposited an additional Rs1,200 with us. This will be deposited in his name as a fixed deposit,” he added.
The society has been approached by around 2,000 members since Monday. It has started disbursing 50 to 60 loans a day.