Bank creates record
in disbursing loans
to self-help groups
for five consecutive years
MADURAI: For the fifth consecutive year, the Canara Bank, Tallakulam banch, has bagged the top slot among other banks in the city in terms of disbursing loans to self-help groups.
With 239 SHGs attached to it, the branch has issued loans to the tune of a few crores in recent years. The only discouraging factor is that the rate of recovery (repayment) has scaled down from 98 per cent to 90 per cent, of late.
According to G. Ganesan, Senior Manager, the branch has managed to bag the ‘best performance award’ with just three SHG circles – Mathichiyam, Sellur and Madurai - under its jurisdiction.
“Lending micro credit is among our priority sector, more so, in the case of SHGs who also come under the category of weaker sections. If the genuineness is ascertained, funds are not a constraint. Loans are given without any security,” he said.The bank encourages SHGs attached to non-governmental organisations. “Since we require a mechanism to follow up, regulate and take corrective steps, we give priority to groups coming through NGOs. Compared to others, the repayment is more prompt among SHGs.”
The former Senior Manager of the branch, C. Arumugam, was deputed to Indonesia to explain the system of micro credit finance to bankers there.
“Our bank is looking at establishing a specialised branch exclusively to handle micro credit finance in Madurai.
The bank’s Alanganallur branch topped in SHG advances in the district,” Mr. Ganesan added.