Page 46 - Banking Finance January 2018

ARTICLE

Moreover various credit societies operating in different credit and help improve their livelihood. The interest sub-
slums have come together to form an umbrella credit soci- sidy will cost the Government nearly Rs 129.01 crore over
ety called "Roshan Vikas". This society has its office quite three years," the official said.
close to the historic landmark 'Charminar' in the old city. The
Roshan Vikas helps the women to secure big loans at rea- The creditworthiness record of women has made banks
sonable interest rates. confident about repayment. They are not hesitant in lend-
ing to women self-help groups. A senior officer from Bank
The membership procedure is quite simple. In every slum of Maharashtra says, "The loan repayment of these SHGs is
10-15 women come together and form a self-help group. 90 percent and we have no issues in giving them the
Contributing Rs. 30 per woman, which is very nominal, the amount."
group saves Rs. 750 per month. This amount is offered as
loan to members of the group at 2 per cent interest rate, Also these loans are expected to motivate women and en-
much lower than the market rate which varies from 5 per hance their performance that would further ensure better
cent to 16 per cent and sometimes depending on the need returns and regular repayment of loans. The scheme is likely
of the borrower it may be as high as 25 per cent. to benefit around 17 lakh women from rural areas and
1,42,218 S H Gs. The beneficiaries are pleased by the initia-
There are several success stories of women in slums jour- tive of the President.
neying from rags to riches after they joined the self-help
groups. Take the case of Jaya, a widow in her early twen- Manisha Kale from Pune's Garib Nawaz Bachat Gat, which
ties. With a mentally retarded daughter and two sons, it will avail nearly Rs 2 lakh, would soon start working on dairy.
was the end of the road for Jaya when her in-laws threw They aim high returns and quick repayment from their
her out of the house. She came to stay with her parents in project.
Ambedkar Nagar slum in Falaknuma and took up odd jobs
as a maid in up market apartments. Tamil Nadu and Andhra Pradesh have also been giving in-
terest subsidies to such organizations. Further NABARD has
President Pratibha Patil will launch a scheme whereby loans declared some co-operative banks under the Orissa State
at an interest rate of 4% will be sanctioned to women's self- Cooperative Bank as Self Help Promotion Institutes (SHPIs)
help groups (SHGs). to promote Self Help Groups (S H Gs) in Orissa.

The President is going to Pune for the launch, where she India Post, the country's postal department, has also dis-
will extend loans to two SHGs from Pune and one each from bursed micro-credit to women self help groups (S H Gs) in
Solapur, Satara and Nashik. eight states and the North East through its tie-up with the
National Bank for Agriculture and Rural Development
An official from the women and child welfare department (Nabard). The states that have been earmarked for this
said, "The 4 percent interest replaces the existing 9-11 per- project are Bihar, Gujarat, Karnataka, Kerala, Madhya
cent. Around 45,000 SHGs will get Rs 50,000, 72,000 will Pradesh, Maharashtra, Orissa and Uttar Pradesh.
get Rs 1 lakh and 18,000 SHGs Rs 2 lakh disbursement. These
groups will be eligible for higher loans once they repay these References:
loans on time." 1. SBH Banking Groups published by SBI Groups (2006).
2. The Hindu daily Newspaper business P.17 date: July 19th
The banks that have been chosen to extend such loans are 2007.
Bank of India, Bank of Maharashtra, Solapur Gramin Bank 3. The business line Hindu Groups
and State Bank of India. Although these banks will provide 4. The Hindu daily Newspaper business, date: September
loans at much lower interest rates, they will not lose any 1st 2007.
amount as the state will pay them the remaining amount Websites:
that they would have earned as interest. 1. Micro finance evaluation
2. Micro finance structure
"The aim being to help these women have easier access to 3. Micro finance implementation

46 | 2018 | JANUARY | BANKING FINANCE

Sashi Publications Pvt Ltd Call 8443808873/ 8232083010