Andhra Pradesh - Warangal   

Insurance cover for SHGs in Warangal

WARANGAL: The Indira Kranthi Patham in the district had come out with another initiative to help the Self Help Groups.

Now, the loans taken by the members of SHGs would soon get insurance facility. The insurance on their loans would help the women meet an emergency situation when they could not repay the loans. The initiative taken up by the Indira Kranthi Patham in the district would be extended to more than 32,000 self-help groups in the district and would benefit around four lakh women.

All those loans taken and given by the self-help groups to its members through the bank linkages would be covered under the new facility.

Interestingly it is only Rs. 5 premium for every Rs. 1,000 loan they take from the groups and this would be annual premium. In case any member of the SHG dies after taking the loan, the insurance on the loan would automatically repay the loan amount to the group. The Life Insurance Corporation of India would extend the insurance facility to all the members of the SHGs. The banks have put condition that women members should take their loans through the micro credit planning by the groups to get the insurance facility.

The insurance facility to all the loans would come into force from August 1 this year.

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