SHGs' credibility goes up and so does bank credit

Staff Reporter

TIRUCHI: : Self-help groups in Tiruchi district are gradually realising their potential as indicated in the quantum leap in the funds forwarded to SHGs this year by Indian Overseas Bank.

A sum of Rs. 6.35 crores has been forwarded as loans to 1,255 SHGs this year, compared to Rs. 1.69 crores loaned to 1,014 SHGs last year by the bank. The SHGs were given loans of Rs. 25,000 to Rs. 2 lakhs for economic activities, the Chief Regional Manager of IOB, VR. Veerasekharan, told The Hindu .

"The repayment rate of the SHGs covered by IOB, constituting one-sixth of the total number of SHGs in the district, is 99 per cent," said Mr. Veerasekharan.

He said the training programmes had helped SHGs focus on their economic initiatives, be it in tailoring, in running provision outlets, starting bakery units, or running passenger vans and transportation vans.

On the marketing front, though the existence of the rural mart of the District Rural Development Agency (DRDA) enabled the SHGs in showcasing products, the possibilities of opening up a few exclusive SHG kiosks in the Corporation limits is reportedly under the consideration.

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