SHGs told to be wary of micro financiers

Collector Ramsankar Naik asked bankers and self help group members not to fall in the trap of micro finance companies. Addressing a meeting of bankers, DRDA officials and IKP staff here on Thursday, he explained that the SHG concept was to improve health, income, assets, education and above all capacity building whereas the micro finance companies or any other institutions with short-term gains would be interested only in profit-making.

He said SHGs were taking part in 22 types of activities such as land development, payment of pensions, insurance, marketing and farming. He called upon bankers to take into consideration the changing needs of groups and prepare suitable programmes.

He said the immediate priority was to enhance the professional skills of the group members to help them expand their activities. He said the group members should think of value-addition activities like processing of tomato for a better price.

He called upon bankers and DRDA officials to probe the reasons for failures on the recovery front and develop new strategies to overcome it.

Vegetable cultivation

He suggested that dairy and horticulture offered a promising income activity for the groups. Even vegetable cultivation ensured decent returns for the group members.

He wanted the bankers and the SHGs to strengthen the relations for achieving the targets beyond income and profits. Only the partnership between bankers and groups could achieve this, he said.

DRDA Project Director Raghunath, SBI Nodal Officer Prasada Reddy, NABARD AGM Srivatsava, State Project Advisor Vidya Sagar and others were present.

  • Collector asks bankers to take into consideration the needs of SHGs
  • SHGs are taking part in 22 kinds of activities, says Collector

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