The Hindu : Andhra Pradesh / Hyderabad News : State to bring 5,000 villages under total financial inclusion

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Sunday, Nov 18, 2007
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Andhra Pradesh

Andhra Pradesh - Hyderabad

State to bring 5,000 villages under total financial inclusion

Y.S. Rajasekhara Reddy

HYDERABAD: The State Government is contemplating to bring in 5,000 villages in different parts under total financial inclusion by the end of the current financial year.

In addition to the financial assistance and incentives, women in these villages could be entitled to get loans under Pavala Vaddi scheme once the villages are brought under total financial inclusion.

The Government plans to extend the facility to 4,000 villages in 2008-09, 12,000 villages the next year covering all the habitations, Chief Minister Y.S. Rajasekhara Reddy said.

The Chief Minister who is in New Delhi to attend the All India Congress Committee meeting reviewed the functioning of Pavala Vaddi scheme with senior officials over telephone on Saturday. Outlining the increase in quantum of loans being provided to self help groups in the past few years, he said 4.33 lakh in SHGs in rural areas would receive loans to the tune of Rs. 6,500 crores during the current year. In addition, about 25,000 groups in the urban areas would be provided with assistance of Rs. 500 crores.

Continuing the trend, the Government plans to extend Rs. 9,330 crore during the next financial year, Rs. 14,660 crore in 2009-10, Rs. 19,320 crore (2010-11) and Rs. 21,330 crore (2001-12).

Dr. Reddy recalled that there were doubts from some sections over the repayment capacity of women and people went to the extent of claiming that the State would be in a debt trap.

However, the women SHGs had demonstrated their capabilities in that the banks were registering recovery rate as high as 99 per cent in a majority of cases.

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