Andhra Pradesh - Ongole   

Interest-free loans to SHGs in State: Minister

ONGOLE: Interest free loans to women Self-Help Groups will soon become a reality in the State.

Speaking after providing bank linkages worth Rs 2.50 crore to 102 women SHGs and inaugurating a Rs. 8-lakh community hall for SHG members in Kandukur on Monday, State Municipal Administration Minister M Mahidhar Reddy brought cheers to women saying “the State government is contemplating to provide interest-free loans as against ‘Pavala vaddi' (three per cent interest rate) charged now. We are working out the details,'' he said.

The proposal was mooted in the wake of the Centre's announcement to bring down the interest rate for SHGs to seven per cent interest from 12 per cent.

He brought more cheers in the face of women saying that over 100 eligible groups in Kandukur, covered under ‘Total Financial Inclusion (TFI) town programme' would get a maximum bank linkage of rs five lakhs.

He promised accelerated development of civic infrastructure in the town. With Kandukur included as the 26th municipality for implementation of Indira Awaas Yojana programme, each of the individuals, who saved 10 per cent, would be eligible for loans ranging from Rs. 1 lakh to Rs. 3 lakh, he added.

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