The Hindu Business Line : AP SHGs to get Rs 7,000-cr loan

Hyderabad, Oct. 2 The Andhra Pradesh Government will ensure availability of Rs 7,000 crore micro loans to members of self-help groups (SHGs) in the State, the Chief Minister, Dr Y.S. Rajasekhara Reddy, said.

Speaking after inaugurating an exclusive branch for micro finance to urban SHGs set up by Indian Bank here on Tuesday, Dr Reddy said that last year Rs 3,500 crore credit was extended to SHGs in the State.

“The Government is keen on doubling it every year. By end of this fiscal year, Rs 7,000 crore will be given to SHGs,” he said.

The Government was also making efforts to clear the loans SHGs had sourced from private money lenders. “In Mahabubnagar, 20 SHGs were given Rs 20 core each to clear loans from private money lenders. In the next three years, we will ensure Rs 1 lakh credit to each of one crore members of SHGs,” he promised.

He asked SHGs to be prompt in repayment. “Micro credit in Andhra Pradesh accounts for over 40 per cent of the entire micro credit in the country. This was possible with the efforts of Government. You should ensure prompt repayment,” he advised.

Cheque distribution

He also formally distributed cheques to some beneficiaries of 750 SHG groups who were granted Rs 7.5 crore micro loans by Microsate (a satellite branch of microloans) set up by Indian Bank in Hyderabad.

Earlier, Mr Sundara Rajan explained the benefits of micro loans from banks as against from private money lenders. “Even without subsidy from some State Governments, our interest is 11.5 per cent,” he explained.

The Microsate branches being set up by Indian Bank were manned mostly by women to work more closely with women members of SHGs, he said.

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

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