The Hindu Business Line : Rural bank with a difference

TO become a deposit holder in this bank, all you require is Rs 10. Thereafter, you can keep saving any amount depositing on a daily basis or at your convenience. The money thus deposited in savings bank account will fetch one per cent more than the nationalised banks.

A unique feature of this bank is that loans are extended only to women deposit holders, while men can open accounts or withdraw money. These `People's Banks', are run by AWARE, a non-Governmental development organisation, in the villages of Andhra Pradesh and Orissa.

Every woman deposit holder, who has saved continuously for a period of six months becomes eligible for loans. The idea is to inculcate the habit of savings as well as promote entrepreneurships in a small way among women, says Mr P.K.S. Madhavan, Founder Chairman of AWARE.

Mr Appalakonda is the Chief Manager of one such `People's Bank', run under the Mutually-Aided Co-operative Societies (MACS) in Kandukur village in Mahboobnagar district of Andhra Pradesh. He has three others trained to undertake the day-to-day operations.

``Rs 50,000 is the maximum loan amount we give to the rural women and loans are not extended to ventures relating to liquor business, cigarette, tobacco or pan shops. Banks function from 9 a.m. to 6 p.m. and the staff collect deposits from home as well,'' he told Business Line.

The bank has evolved a clutch of schemes called Gramalaxmi (crop loan), Kamakshamma Arthika Abhivruddi scheme (small amounts) and Swayam Krushi scheme to help rural women save and get loans to take up self driven activity, he said.

There are already 1,200 depositors in this bank alone and the numbers are growing. The repayment, which again is flexible and according to the capacity of the person, has also been very good.

This is because of the continuous monitoring. For example, from whether the crop loans are being utilised for the specific purpose to the periodic progress of the crop etc.

In the case of small loans up to Rs 5,000, the bank has ventured to extend even without collateral or a surety. All that is required is a recommendation from the Village Association or the Mahila Mandali.

AWARE today runs a total of 65 `People's banks' under the MACS in Andhra Pradesh and Orissa.

More Stories on : Regional Rural Banks | Rural Development | Andhra Pradesh

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Rural bank with a difference

PSBs: Capital needs force rethink

Bonds recover; rupee unchanged

Peerless to seek easing of curbs on investment pattern

SBH raises fixed housing loan rates by 25 bps

Mini-ratna status for Hudco

Coimbatore LIC division scores on Bima Plus

New India Assurance profits jump 130 pc to Rs 4,046 cr

`Factoring services lack legal protection'