Financial Daily from THE HINDU group of publications
Tuesday, May 23, 2006
Financial Daily from THE HINDU group of publications Tuesday, May 23, 2006 |
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Money & Banking
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Credit Market Industry & Economy - Rural Development States - Tamil Nadu IOB initiative frees villagers from moneylenders L.N. Revathy
Banking on villagers Bank creates awareness of thrift among villagers. Extends overdraft facility for savings bank accounts. Sanctions credit cards, kisan cards. Helps SHG to tie up with Hindustan Lever to market their products.
Coimbatore , May 22 By adopting Vagarayampalayam hamlet in Palladam taluk of Coimbatore district for implementation of the financial inclusion project, Indian Bank has managed to alleviate 1,000-odd households from the clutches of private moneylenders. Barring a handful, the rest of the families in the village, which is about 30 km from Coimbatore, had hitherto depended on pawnbrokers and private moneylenders for financial support. The existence of a co-operative society in its vicinity, villagers say, was not of much help. The villagers said they were disinclined and nervous to approach a commercial bank. Getting a loan from a bank was, according to the villagers, `not easy and a time-consuming process.' They instead preferred the moneylender, who came to their immediate rescue — `no questions asked', they added. Though remote, the village did not lack in infrastructure. Connected by an all-weather road, it has a primary health centre, veterinary centre, primary and high school and an anganwadi. The missing link probably was a bank's presence to create the habit of thrift among the economically weaker sections. Indian Bank, according to its Vagarayampalayam Branch Manager, Mr K. Ramakrishnan, decided to tap the potential.
Creating awareness
The bank officials had, over the last two years, persistently attempted at creating awareness about the banks' services by organising sensitisation camps, and finally managed to bring the entire village within its fold. Out of a populace of 3,178, comprising mostly of agricultural labourers, the bank identified 2,416 persons eligible under the FI project. "We not only helped them open accounts with us, but have extended savings bank overdraft facility to five (identified) needy customers such as a barber, a newspaper agent, a photo frame shop keeper, a petty shop owner and a lady engaged in power loom operations. We have sanctioned 17 general credit cards and 12 Kisan credit cards. We have helped the men folk and the children form self-help groups in the village. We have enabled one of the SHGs tie up with HLL for marketing HLL products," Mr Ramakrishnan said. The initiative has just started, but the villagers appear a relieved lot as they are now able to access funds at cheaper rates.
More Stories on : Credit Market | Rural Development | Tamil Nadu | Public Sector Banks
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