The Hindu : Tamil Nadu News : `Good repayment, an impetus to self-help group movement'

Online edition of India's National Newspaper
Monday, Feb 07, 2005

Tamil Nadu

Tamil Nadu

`Good repayment, an impetus to self-help group movement'

By Our Staff Reporter

CHENNAI, FEB. 6. Tamil Nadu is in the forefront of the self-help group (SHG) movement and one of the key aspects driving the momentum is the good rate of loan repayment.

The 98 per cent loan recovery rate makes the movement — whose cumulative credit disbursements stood at Rs.1, 051 crores — unique, L.N. Vijayaraghavan, Chairman and Managing Director, Tamil Nadu Corporation for Development of Women, said here on Saturday. The SHGs were also instrumental in empowering women through entrepreneurship and economic development. The savings of SHG members stood at Rs. 607 crores, he told a seminar-cum-exhibition organised here by the State Bank of India (SBI) to mark the launch of `International Year Micro Finance-2005'.

B.B. Nayak, General Manager, National Bank for Agriculture and Rural Development, said the quality of SHG growth was the best. The near-zero level of non-performing assets encouraged banks to extend credit to the SHGs without collateral. "The banks are eager to participate in any programme through the SHGs."

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