The Hindu : Vallalar Grameen Bank plans `artisans credit card'

Online edition of India's National Newspaper
Tuesday, Jan 21, 2003

Southern States

Southern States - Tamil Nadu-Chennai

Vallalar Grameen Bank plans `artisans credit card'

By Our Special Correspondent

CHENNAI Jan. 20. The Vallalar Grameen Bank (VGB), a regional rural bank sponsored by the Indian Bank, will enter a new area of operation on Tuesday, when it launches an "artisans credit card" for enrolled wood carving artisans in Kallakuruchi cluster of Villupuram district.

Artisans who have a "satisfactory record" and who possess ID card issued by the Handicrafts department can draw a limited amount of credit to meet "their immediate needs". The credit limit will be Rs.1000 to Rs.3,000 for semi-skilled workers, Rs.3,000 to Rs.5000 for skilled artisans and upto Rs.1 lakh for master craftsmen, the VGB's Chairman, M. Padmanabhan, told mediapersons here on Monday.

The Indian Bank's Chairperson, Ranjana Kumar, would launch the artisan's credit card facility on Tuesday.

Noting that the entry of the RRBs had considerably reduced the influence and working of moneylenders who advanced much-needed money to the poor artisans at usurious rates, Mr. Padmanaban said the credit card would help the beneficiaries to draw funds, for starters from the Kallakuruchi branch of VGB.

Started in 1988 for agricultural loans, the VGB today had 23 branches in Villupuram and Cuddalore districts. It began diversifying its activities recently to promote rural industries. A woodcraft cluster programme took root in 2000 at Thenkeeranur in Kallakuruchi, after a survey showed the 250 families of wood carvers did not have much access to bank loans.

The Project VRIKSHA (VGB's rural initiative at Kallakurichi Shirpa Handicrafts Association) was started to encourage the artisans to form self-help groups. Along with NABARD, the VGB had so far granted Rs.4.29 lakhs as assistance towards promotion of the art.

The convergence of the focus of agencies such as the district rural development agency, the Regional Director for Handicrafts Development and the Union Textiles Ministry had helped the artisans financially and also helped in sustaining the art form. So far the VGB had disbursed Rs.46.10 lakhs as credit assistance to VRIKSHA.

A similar project, VARSHAA (VGB at Auroville SHG Handicrafts artisans association), was assisting SHGs with credit for activities such as making agarbathi, perfumed candles with flower inlay, leather goods, terracotta and wooden toys.

In the two districts, the VGB had helped in forming over 1200 SHGs for different activities. It was trying to bring in the cluster level SHGs to form a federation for increasing activities and credit assistance, he added.

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