Question

What is a unique feature of the Navajeevan scheme regarding loan security?

• A. It requires a property as collateral.
• B. It requires a government guarantor.
• C. It does not require collateral security.
• D. It requires a fixed deposit as security.

Answer 1

Answer:

C. It does not require collateral security.

• The Navajeevan scheme is implemented through the Employment Department in Kerala.

• The scheme aims to ensure the financial self-reliance of senior citizens in the age group of 50 to 65 years.

• It targets those who have been unable to secure employment despite registration at Employment Exchanges in Kerala.

• The scheme provides suitable means of livelihood to eligible individuals.

• Loans of up to Rs 50,000 are granted, 25 per cent of which (up to Rs 12,500) can be subsidy and 75 per cent can be bank loan.

• Applicants must have an annual income of not more than 1 lakh.

• The scheme does not require collateral security for the loan.