The Hindu Business Line : Credit needs of poor pegged at Rs 3.6 lakh crore

Hyderabad March 25 The total demand for micro-credit in India is pegged at Rs 3.6 lakh crore as against Rs 20,000 crore the microfinance institutions offered at present, according to Dr Vikram Akula, Chief Executive Officer of SKS Microfinance.

Addressing the daylong CII conference on `Sustainable integrated development of small farmers and Indian agriculture' here on Saturday, he said the potential to be tapped was huge.

Stating that there were 15-crore poor households in the country, he said the average credit needs for a household were estimated at Rs 30,000.

Even if we put the inaccessible and unqualified households aside, the potential size would be Rs 3,40,000 crore. At present, most of this credit need was being attended to by local moneylenders and other informal sources.

"This can be tapped," he said.

Mr N.V. Ramana, Group CEO of BASIX, called for broadening the paradigm from micro-credit to livelihood, as micro-credit was only addressing the problem of livelihoods peripherally. Mr Utpal Sengupta, President of Agro Tech Foods Ltd, said public-private partnerships could help strengthen the extension activity. "The model has emerged as one of the crucial areas in agricultural extension," he said.

Agri insurance

Addressing the session on micro-insurance in life, health and crop, Ms Radhika Srinath, Head of Retail (AP) of IFFCO TOKIO General Insurance, said a variety of aspects in of agriculture were now being covered.

The emerging areas of insurance cover included seed germination, excess rainfall and winter crop.

The target users being the rural population, the insurance products should be simple and straightforward in order to make them more presentable.

Ms M. Rajeshwari Singh, Regional Manager of Agriculture Insurance Company of India, called for reduction in of the size of the unit, quick settlements and affordable premiums.

More Stories on : Rural Development | Credit Market | Andhra Pradesh

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