The Hindu : Andhra Pradesh / Hyderabad News : Rs. 7,000-cr. loans for SHGs in Andhra Pradesh

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Wednesday, Oct 03, 2007
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Andhra Pradesh

Andhra Pradesh - Hyderabad

Rs. 7,000-cr. loans for SHGs in Andhra Pradesh

Special Correspondent

Various banks to extend loans to them

HYDERABAD: The State Government has made arrangements for extending loans worth Rs. 7,000 crore through various nationalised banks to women self-help groups (SHGs) in the current financial year.

Announcing this after formally inaugurating a ‘microsate’ branch of Indian Bank here on Tuesday, Chief Minister Y. S. Rajasekhara Reddy appealed to the women beneficiaries to ensure 100 per cent repayment on time so as to enhance their credit-worthiness. Addressing women SHGs belonging to 754 groups in Serilingampally, Kukatpally and Qutbullapur, Dr. Reddy said that Indira Gandhi was the inspiration for ‘pavala vaddi’ (three per cent of interest) scheme.

After his Government took over the reigns of the State, he said Rs. 1,100 crore was given to SHGs in the first year; Rs. 2,300 crore in the second and Rs. 3,500 crore in the third.

Dr. Reddy congratulated Indian Bank for setting up of a branch with all women officials (excluding the branch manager) exclusively for micro-credit loans.

As much as 40 per cent of micro-credit loans in the country were being given in Andhra Pradesh alone.

Citing an example of extending Rs. 1 crore to 20 SHGs in Mahabubnagar district, he said the interest component worked out to just Rs. 3 lakh through ‘pavala vaddi’, whereas it would come to Rs. 36 lakh, if the same amount was raised from private money lenders.

Minister for Woman and Child Welfare N. Rajyalakshmi said the Chief Minister was keen on extending the ‘pavala vaddi’ scheme even to urban women. She distributed loans worth Rs. 7.5 crore to 754 SHGs.

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