The Hindu Business Line : `Women SHGs using bank credit very well'

WOMEN self-help groups (SHGs) are doing very well in utilising bank credit and are also prompt in repayment besides helping banks in loan recovery, according to Mr K.V.L.N. Sarma, Manager of State Bank of India (SBI).

Mr Sarma, who was participating in a seminar on Wednesday on promoting self- employment opportunities for women, said that the State Government had set a target of lending Rs 1,000 crore to women SHGs in the State.

In Visakhapatnam district, the target is Rs 50 crore, of which Rs 13 crore has been disbursed so far.

"The recovery rate is 98-99 per cent and we have absolutely no problem with lending to women SHGs. In fact, some of the groups are even helping the banks in the recovery drive and we are paying them three per cent commission,'' he said.

He added that there were 18,000 such SHGs in the district and last year the banks had lent them Rs 20 crore. East Godavari district, with more than 50,000 self-help groups of women, is the leading district.

According to Mr Sarma, banks often find it difficult to recover funds lent to Government-sponsored schemes, as there is no organised effort to make use of the loans properly and stick to the repayment schedule.

"Women SHGs have proved to be an exception and banks are willing to use their services in the rural areas.''

He urged women entrepreneurs to make use of the schemes offered by the Khadi and Village Industries Commission (KVIC) and set up more cottage units in rural areas.

Mr L. Lakshman, General Manager of the District Industries Centre (DIC), said that the steel plant and other major industries in Vizag were sourcing their components from other States, as no quality products were available locally. More ancillary units could be set up in the district by women entrepreneurs and others; the DIC would offer all help, he added.

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