Aajeevika Grameen Express Vehicle Loan Yojana (Interest free) for women

Aajeevika Grameen Express Yojana Interest free vehicle loan for women

The Ajeevika Grameen Express Yojana (AGEY) is a sub scheme under Deendayal Antyodaya Yojana which is focused towards helping members of Self Help Groups (SHGs). They will do so by providing public transport in backward areas and to women.

Aajeevika Grameen Express Yojana

Launch Details

This scheme was launched on 10 Aug 17. It was first announced on 20 Jul 17. But now it has finally come into effect. This scheme is getting supervised by the National Rural Livelihoods Mission Deendayal Antyodaya Yojana (NRLM DAY).

The basic idea of the scheme was discussed at the presence of State Transport Ministers at Dharmashala on Jun 13, 16. The State Transport ministers of 13 states were present at the meeting.

Key features of AGEY

  • Under this scheme you will get safe and affordable rural transport vehicles. These will include e-rickshaws and 3 and 4 wheel transport vehicles that will connect remote villages.
  • At the beginning of this scheme, 250 blocks will get its benefit for a period of three years starting from the period of 2017-18, then 2018-19 and finally 2019-20.
  • The main benefit of this scheme is that women will get free loans to obtain these vehicles. This means that the loan amount will be free of any interest.
  • The main objective of this scheme is to ensure that women get better opportunities to earn and they have a source of income – starting from those living in remote areas.
  • This is why women will get this free loan to obtain vehicles from the government. The SHGs in the backward areas under NRLM DAY will take care of the road transport services.
  • With the help of AGEY, women in the rural areas can ensure that they travel safely and have access to markets, hospitals and schools and educational institutes.
  • If you choose to go with an e-rickshaw, then the cost of such a vehicle will have an upper limit of Rs. 6.50 lakh. The same goes for 3 wheelers and 4 wheelers.
  • The CBO members and the SHG members both will receive adequate training at the Rural Self Employment Training Institutes (RSETIs) so that they can better perpetuate this scheme.

Eligibility Criteria

  • You have to be a member of the self help groups in order to take part in this scheme. Only the members of SHGs will get the money for the vehicles.
  • If you are a resident of rural areas and are associated with more than one SHG, you will be able to take the help of this scheme and get the grant.
  • Although it is not an eligibility criterion this scheme will have special provisions for women.

Documents needed for this scheme

  • Aadhar card of the creditor: You have to produce the Aadhar card of the woman who wants to opt for this type of loan. Aadhar card is a must have for this scheme. The Aadhar card code will help you get the ID and it will also help verify the address.
  • SHG papers: You have to produce papers that clearly mention that you are the member of any SHG to be eligible for this scheme.

Covered Area

  • There are 8 states for which this scheme has been approved or now. Each of these projects will be selected block-wise. The state will select the blocks for which this scheme shall be implemented.
  • However, the selected blocks need to be implemented by the NRLM and they also have to have matured CBOs that are already working there.
  • The best indicator of regions that need this aid is those which have backwardness and lack transport links. The areas which are not well connected will be chosen under this scheme.
  • The State Rural Livelihood Mission (SRLM) will study the traffic and identify the routes and the capacity of vehicles for them so that the vehicle doesn’t disrupt the sustainability of the place.
  • In fact, the 250 blocks that will receive the vehicles, shall have transport network planned for them so that the routes are clearer and they are efficiently connected.
  • The vehicles will come with their own color code and they will carry AGEY mark so that they are identified from the rest and they aren’t diverted into other routes.
  • To ensure that this programme reaches the covered area, the state shall arrange a capacity schedule for the staff at the state, district and block level for this scheme.


This scheme has a budget of Rs. 16.06 crore for the 8 states who have approved their blocks for now. The budget shall be shared by the state government and the central government. The share of the central government in this net budget will be Rs. 10.16 crore.

Sources say that the (4 lakh) SHGs have got a fund of Rs. 1815 crore besides Rs. 1088 crore (to 7 lakh SHGs). As the scheme progresses, more and more SHGs will get the help of this scheme and therefore the budget might further increase with the addition from the state government.

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