[Apply] Kayaka Loan Scheme in Karnataka 2020

Kayaka Scheme Loan Yojana in Karnataka 2020 -21 [Online Application Form, Eligibility, Portal, How to apply]

Recently the Karnataka government has launched the Kayaka Scheme for those women, who are registered members of the any certified Self-Help Groups. Under this scheme, applicants will attain credit from the state government. In this article, you will read about the features, eligibility, necessary documents and application procedures.


Name of the scheme Kayaka Scheme Yojane
Launched in Karnataka
Launched by H.D Kumaraswamy
Target beneficiaries Registered members of Self-Help Groups
Supervised by Women Welfare Department of Karnataka
Portal NA
Helpline Number NA

Key features of the Kayaka scheme

  1. Women empowerment in the state – The Karnataka state government has implemented the scheme with the motive of developing the vocational platform for the rural women. Proper assistance to the SHGs will pave the path for more occupational opportunities.
  2. Monetary assistance for SHGs – It is a scheme that targets the development of the registered self-help groups in the state. With the additional money in the accounts, these agencies will be able to train village women, so that they can earn their own livelihood.
  3. Credit facilities – Under this scheme, SHG members will be permitted to apply for business loan from the cooperative banks. They can apply for either Rs. 5 lakhs or Rs. 10 lakhs credit.
  4. Low interest rate on the credit amount – If the applicants get a monetary loan that does not exceed Rs. 5 lakh mark, then applicants need not worry about any interest payment. If the loan sum is within Rs. 5 lakhs and Rs. 10 lakhs, then the cooperative bank will charge only 4% interest on the amount.
  5. Paves the path for skill enhancement – Once the self-help groups attain the money, they can make the necessary arrangements, which will increase the skill level of the female members.
  6. Encourage women to start their business – As the women, associated with the Self-Help Groups, get money, they will get the mental boost to start small-scale business ventures. It will make the rural women financially independent.
  7. Credit issued by cooperative banks – The state CM highlighted that any interested applicant can apply for the credit from only state registered cooperative financial institutes and banks.

Eligibility for the application

  1. Only women residents of the state – The scheme allows the only the female applicants, who are permanent and legal residents of Karnataka to apply for the low interest credit scheme.
  2. Member of SHGs – It is mandatory for the female applicant to be associated with any registered Self-Help Group permanently.
  3. Certified SHGs only – The scheme guideline highlight that if the self-help agency does not have the necessary state authorized certificates, then such groups will not attain the perks of this scheme.
  4. Must have a bank account – The applicant must have an active bank account in the cooperative bank.

Documents necessary for application

  1. Residential proof – Only those women, who have official and valid residential documents, issued by the Karnataka government, will be permitted to apply for the special loan.
  2. Registered SHG member – Applicants need to furnish such official documents, which highlight that she is a registered member of any of the operational Self-Help Groups.
  3. Aadhar card – It has been mentioned in the scheme details that all interested applicants must submit a copy of their Aadhar card with the application form.
  4. Bank documents – The state government will deposit the credit amount in the bank account of the SHG. Thus, applicants must produce documents, which will highlight the account number, name of the bank and the branch, branch code and IFSC number.

How to get registration form and apply for the benefits?

  1. Online portal – The state government has already launched a separate portal for the implementation and application of the scheme. Interested Self-help groups must log in and get access to the digitized application form.
  2. Application form from cooperative banks – The authority of the groups can also go to their nearest cooperative banks and get the application form.
  3. Form fill-up – These forms will be given to the applicants free of cost. Once the applicant gets the form, she must fill it up with the necessary details.
  4. Attaching documents – Applicants must attach the photocopies of all the official documents, which will help the government officials to check the authenticity of the claims.
  5. Submission of the form – Once the application form has been filled in; the applicant must submit the form at the bank.
  6. Fund transfer – Once the bank has verified the details, the requested credit will be deposited in the account of the self-help group.

Development of the job opportunities in the urban areas will not increase the overall GDP of the state. The scheme encourages SHGs and their members to take a step forward and establish their small-scale ventures. With the encouragement of the state government, these groups will be able to assist village women better.

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