Maharashtra Home Minister Dilip Walse Patil said the Maharashtra government has decided to offer personal loans of up to ₹50,000 to prisoners against their income from work done in prison. The state government has initiated a personal loan scheme for inmates with the aim of improving the standard of living of families of inmates.
The Maharashtra State Co-operative Bank will lend under the scheme up to ₹50,000 at an interest rate of 7%. The program will be implemented on a pilot basis at Yerawada Central Jail, Pune, Maharashtra Home Minister Dilip Walse Patil has said.
This type of loan is called “khavti” loan, and the ordinance on this program was issued on Tuesday, the minister said. “There will be no need for a guarantor. It will be disbursed on a personal surety. The bank will decide the amount based on income, skills and daily wages.
The decision was taken in a meeting chaired by Interior Minister Patil at the Sahyadri Guest House and a Government Resolution (GR) was also issued in this regard.
Launching the program, Patil said, “It will also be the first innovative loan program in the country to get a loan based on income earned from working in a prison. With this, a welfare program can materialize and about 1,055 prisoners can benefit from this program. Many inmates are serving long sentences. Since the majority of these detainees are prominent family members, their families may be distraught.
“A feeling in the family that the person who went to prison has failed in his family duties. In such a situation, giving a loan to an inmate for the needs of his family would help to increase the sympathy and love of the family for the detainee and contribute to the maintenance of a healthy family climate”, added the Minister.
Under this program, loan facility will be decided based on the inmate, inmate’s loan limit, length of sentence, possible relief, age, annual working day estimated and minimum daily income. The loan will not require a guarantor.
The lending bank will be solely responsible for ensuring that the loan amount is used to meet the needs of the family concerned or to pay their lawyers’ fees or for other legal matters. In addition, 1% of the amount recovered by the bank from the repayment of the loan will be donated annually to the Prisoners Welfare Fund.
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