Andhra Pradesh - Vijayawada   

Paavala Vaddi: SHGs not happy with bankers

VIJAYAWADA: The discontented faces of women clearly showed that the monetary benefit of ‘Paavalaa Vaddi’ scheme did not come to them as assured. Many Self-Help Groups (SHGs) members were apparently not happy with the ground realities in disbursement of ‘Paavalaa Vaddi’ loans to the SHGs. The SHGs’ members say that the bankers are not keen on releasing the loans to them. They also allege the bankers are insisting that they pay insurance amount to avail the ‘Paavala Vaddi’ loans. Some of them, who religiously followed the bankers’ advice on insurance, now feel let down, as they ‘did not get insurance benefits’.

“We paid Rs. 850 towards insurance premium for our group members following advice of the bankers. But, one of our members S. Pushpavathi was denied insurance benefits when she was hospitalised,” says, G. Tayaramma, leader of Roja group in Machavaram area.

Ms. Pushpavathi says she was forced to shell out nearly Rs. 1 lakh for treatment when she met with an accident. “They (bankers), instead, asked us to take back our share of Rs. 850,” she says.

The problem grew after some banks either introduced insurance schemes, or entered into an agreement with insurance companies. With a view to develop their business, the bankers are insisting that the SHGs should take insurance, explains K. Sridevi, corporator and AIDWA city secretary.

There were many instances when the SHGs that opened savings accounts six months to one year ago were denied loans. Members of the Srisainatha, Sri Anjaneya, and Kanakadurga groups in New Rajarajeswaripeta alleged that their banker spoke to them in a very degrading manner, and humiliated them when they approached him for loans after six months of savings.

M. Lakshmi of Durga Bhavani group has a typical problem. Her group invited their banker to pay a visit to their locality because he says he cannot sanction loan unless he visits their place.

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