The Hindu : Tamil Nadu News : Banks urged to sanction fresh loans to women Self-Help Groups

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Monday, Aug 18, 2008
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Tamil Nadu

Tamil Nadu

Banks urged to sanction fresh loans to women Self-Help Groups

Special Correspondent

They have responded positively to government’s appeal, says Stalin

PHOTO: R.M. RAJARATHINAM

REVOLVING FUNDS: Local Administration Minister M.K. Stalin handing over a cheque to a self-help group member at Tiruchi on Sunday. (From left): Collector T. Soundiah, Transport Minister K.N. Nehru and Forest Minister N. Selvaraj are also in the picture. —

TIRUCHI: The government has requested banks to sanction fresh loans to women self-help groups (SHGs) in view of their good repayment track record, Local Administration Minister M.K. Stalin said here on Sunday.

“The recovery rate of loans sanctioned to women SHGs is over 95 per cent. We have already talked to bankers on sanctioning fresh loans and they have responded positively,” Mr. Stalin told a function to mark the distribution of revolving funds to the extent of about Rs.10 crore to 2000 self-help groups in Tiruchi district.

Tamil Nadu has about 3.67 lakh groups with over 59.07 lakh members. Their total savings are around Rs.1,826 crore.

Though only rural SHGs were given revolving funds initially, the Dravida Munnetra Kazhagam government had extended the benefit to those in the urban centres too. During 2007-08, the government had allotted Rs.25 crore for providing revolving funds to 25,000 urban groups. But when it was found that many other qualified groups had still not got the funds, Chief Minister M. Karunanidhi allotted Rs.150 crore for providing the fund to about 1.50 lakh urban groups.

The SHGs were promoted by the DMK government to give self-confidence to women to take up income-generating ventures by their own and not with the intention of using them for political ends, he said.

Stone laid

Mr. Stalin also laid the foundation stone for 656 development works, sanctioned at a cost of Rs.16.89 crore, and commissioned 439 others executed at a cost of Rs.5.97 crore. He also distributed welfare assistance worth Rs.6.24 crore to 4,494 beneficiaries.

Transport Minister K.N. Nehru; Forests Minister N. Selvaraj; MPs L. Ganesan and N. Siva; Mayor Sarubala R. Tondaiman; MLAs Anbil Periasamy, K.N. Sekaran, R.Rani, A. Soundapandian and R. Manickam; chairperson of the State Social Welfare Board Rokkaiah Malik and Collector T. Soundiah spoke.

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