Banks to provide credit linkage to 1 lakh women SHGs

In the State Level Bankers’ Committee (SLBC) meeting a decision was taken for providing credit card linkage to more than 1lakh woman self groups (WSHGs) in the state during the current fiscal. Such loans will amount to Rs 659.63 crore.

The Commercial Co-operative and the regional rural banks (RRBs) will open 101483 WSHG accounts during the fiscal. This will be 19.56 per cent more than the last fiscal. In estimated terms it will be 45.51 per cent more than 2007-08.

Earlier during 2007-08 banks had provided credit linkage to 84,879 WSHGs involving Rs 454.1 crore. According to official sources at that time they were able to achieve 84 per cent of the physical target, 99 percent of the credit exposure target during the last fiscal.

In the meeting it was decided that the commercial banks will provide loans to 81,483 WSHGs involving an amount of Rs 529.63 crore, the regional rural banks (RRBs) are expected to provide Rs 28.15 crore loan to 35,100 WSHGs.

In addition in this fiscal, the Orissa State Co-operative Bank will also open 20,000 WSHGs credit accounts providing Rs 130 crore loan during this fiscal.

Likewise, per group investment aim of the WSHGs, has been raised to Rs 65,000 for 2008-09 compared to Rs 45,000 in 2007-08. The limit in the investment has been raised to bring in balance with the limit reached in Andhra Pradesh.

In the meeting the decision was taking to observe September, 2008 as the self help group (SHG) month in the state in order to focus on WSHG formation in the left out areas.

Every Tuesday will be assigned as the SHG day and all the rural and semi urban branches of various banks will have signboard displaying information regarding this.

The sources said all efforts will be made to maintain transparency in the operation of the Micro Finance Institutions (MFIs) and their areas of operations are to be determined.

The banks have been directed to keep check on the disbursal of the loans that they are being used for the stated objective and are not diverted for other purposes.

As sharing of the information related to the MFIs in respect of financing to SHGs, WSHGs and Joint Liability Groups is essential, the committee took the decision that all the lending institutions and the banks should share the detail information regarding the financing of MFIs and the forward lending by them to these groups.