Shimla, Jul 20 (PTI) Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Thursday launched a collateral-free loan scheme for women.

The 'Sashakt Mahila Rin Yojna' is an initiative of Himachal Pradesh State Cooperative Bank (HPSCB), which will provide loans to women for pursuing their entrepreneurial dreams, engage in livelihood activities, fulfil their day to day needs and uplift their families, a statement issued here said.

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Sukhu said that the scheme aims to empower women as the applicants need not to provide any assets or collateral as security against the loan amount.

"The absence of collateral removes a significant barrier for women, especially those who may not have valuable assets to offer as security for taking loans," he added.

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By providing financial assistance to women for self-employment and livelihood activities, the scheme will contribute to the economic empowerment of women, make them financially independent and improve their socio-economic status, the chief minister said.

Under the scheme, the bank offers credit of Rs 21,000, Rs 51,000 and Rs 1,01,000 at a relatively low-interest rate of 8.51 per cent.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)