Special Correspondent

VIJAYAWADA: ICICI Bank has announced an interest waiver scheme for self-help groups (SHG) that are lagging behind in payment of instalments of micro-finance loans.

Krishna district Collector Navin Mittal, addressing a press conference along with ICICI Senior General Manager (Rural Assets and Agribusiness) Rajiv Sabharwal, said on Thursday that the bank had extended loans to the tune of Rs. 120 crores to the SHGs of Krishna district in March 2006. While Rs. 70 crores had been recovered, Rs.50 crores had not been paid by the thrift groups for various reasons.

Hence, the bank had come up with the scheme to bail out defaulters by waiving the interest.

Under the scheme, total outstanding interest on loan would be waived for the groups that had paid nine instalments already. For the groups that had paid between six and nine instalments, 75 per cent of the outstanding interest would be waived, while only 50 per cent of the outstanding interest would be waived for the groups that had cleared between three and six instalments.

Only 25 per cent of the outstanding interest would be waived for groups that paid less than three instalments.