The Primary Agriculture Cooperative Credit Societies in the district is all set to don a new role as Self-Help Promoting Institutions (SHPI). This is to promote self-help groups as well as extend credit to them.
This is for the first time that the cooperative credit institutions in the district are going to forge credit linkage with the SHGs.
The initiative, to be facilitated by National Bank for Agriculture and Rural Development (NABARD), will be acting as a catalyst for improved social sector interventions in the rural areas of the district.
NABARD sources told The Hindu the scheme had dual benefits as it would not only encourages creation of more SHGs and facilitate its savings but also help the societies to widen their business avenues, improve client outreach and increase its profitability.
A senior official in NABARD said that only good working/well functioning credit societies in the district would be involved as SHPIs. The designated SHPIs will be given ‘promotional grant assistances’ by NABARD for each of the self help groups that were credit linked with it. “These grants are going to be profits for the societies,” NABARD sources said.
The societies are to be used for credit linkage with SHGs because of its strong presence in the rural areas.
“Apart from it, the approach is also expected to improve the participation of cooperative sector credit institutions in the overall SHG-Bank linkage initiatives underway in the district,” NABARD officials said. NABARD will give advisory support to the staff of the societies during the formation and nurturing of SHGs.