Karnataka - Bangalore   

Bank opens micro-finance branch in State

Bangalore: Indian Bank opened its first micro-finance branch (Microsate) in the State exclusively for urban self-help groups (SHGs) and non-governmental organisations associated with them here on Tuesday.

Inaugurating the branch, Chairman and Managing Director of the bank M.S. Sundara Rajan said Rs. 25 crore would be released to the branch by the end of March for disbursing funds to SHGs. There are 12 Microsate branches of the bank in the country.

Addressing a small group of women from some SHGs, Mr. Rajan said they could avail themselves of small loans for activities such as making candles, agarbathis, soaps, areca leaf plates and eatables, which did not require sophisticated equipment or high technical skills.

K. Jothiramalingam, Principal Secretary, Urban Development Department, said his department would grant a 15 per cent subsidy to the bank under the Swarna Jayanti Shahari Rozgar Yojana. Malay Mukherjee, Deputy General Manager, was present.

G.V.N.S. Ramoji, Branch Manager, who welcomed the audience, said the recovery rate was as high as 95 per cent and the SHG scheme was a great success.

N. Bhagya and N. Sunita, members of Sri Vinayaka SHG of Jakkasandra in Koramangala said the scheme had helped women get loans at low interest rates.

Mr. Rajan disbursed Rs. 10 crore to Sunni Collection Private Ltd., a micro-finance institution, for distributing loans to over 10,000 members of different SHGs.

Apart from direct loans, tailor-made loan products such as Vidya Shobha, which is an educational loan for the wards of SHGs; Grihalakshmi, a housing loan; Janashree Bima Yojana and universal healthcare policy at a low premium had been introduced for the benefit of members, he added.

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