Mysuru is the only district from the State that has been chosen for digitisation of active self-help groups (SHGs). Mysuru has more than 40,000 SHGs, all of which are expected to be digitised in the next six months.
The project, launched by the Union government and including 22 districts, has been entrusted to the National Bank for Agriculture and Rural Development. NABARD has, in turn, asked a few NGOs to complete the project, assigning groups across the district to enumerators for collecting data for facilitating digitisation.
Lead bank manager K.N. Shivalingaiah told The Hindu that the financial position, links, loans and other details about SHGs will be digitised, which will be useful for banks in the long run.
Easier assessment
“Dual memberships and multiple finance availed from various banking institutions has turned many SHG members into defaulters. Recovery of loans from them has also slowed down. These issues can be overcome if banks get to know complete the profile of SHGs,” Mr. Shivalingaiah said.
“If the SHG is a defaulter, the bank will come to know from the data accessed from its digitised records,” he explained.
He said the project would help to grade SHGs based on their creditworthiness and eligibility status for fresh loans on the basis of their track record.
Mr. Shivalingaiah added that each enumerator has been assigned 30 to 40 SHGs. He said NABARD has had two rounds of discussions with the NGOs on the objectives of the project and on what needs to be done to meet them.
The project will help to grade SHGs based on their creditworthiness, eligibility for loans
