PM Modi Launches Cooperative Credit Initiative for Rural Women Entrepreneurs in Bihar

By: WE Staff | Wednesday, 3 September 2025

• Prime Minister Narendra Modi inaugurated Bihar Rajya Jeevika Nidhi Saakh Sahkari Sangh Limited virtually
• The program is a cooperative model for offering low-cost credit to rural women entrepreneurs
• It looks to make larger loans more easily available at low interest rates

Prime Minister Narendra Modi on Tuesday inaugurated Bihar Rajya Jeevika Nidhi Saakh Sahkari Sangh Limited, a cooperative society aimed at offering cheap credit to rural women entrepreneurs.

As per an official statement, Jeevika Nidhi is a collateral-free financial system with the dual objective of weaning people off the microfinance institutions (MFIs) and introducing bigger loans at lower interest rates. The scheme will be financed jointly by the Centre and the Bihar government.

In the launch, PM Modi credited Rs 105 crore in the account of the institution to begin operations. Highlighting the importance of women empowerment, he mentioned that women empowerment is a biggest driver for India's progress and stressed the need for removing impediments that make their life more complex.

All Jeevika federations at the cluster level will become members of the cooperative, providing women covered by self-help groups (SHGs) an alternative to MFIs, which usually attract 18 to 24 percent interest.

The process will operate completely on a digital platform to facilitate faster and more transparent disbursals of loans directly into the bank accounts of Jeevika Didis. To aid this digital transition, 12,000 community cadres are being equipped with tablets.