Loans at 4% interest for self-help groups: Minister

The Pune District Central Co-operative Bank has decided to waive off complete interest on loans of nearly 18,000 self-help groups associated with them. Though the scheme comes with a rider,they have to return the amount in the stipulated time.

General manager of the bank A S Kale said that they were assessing the self-help groups which can avail of this scheme and drives to spread awareness about the scheme,as mooted by the minister,will be done by us. “We would follow the orders as issued by the minister and create awareness among the self-help groups,” he said.

Patil’s four per cent interest on loans replaces the existing 9-11 per cent interest rate.

Around 45,000 self-help groups will get Rs 50,000 while 72,000 self-help groups will get Rs 1 lakh and 18,000 will get Rs 2 lakh disbursement in the state.

These groups will be eligible for higher loan amount once they repay the loans on time. In Pune,the self-help groups would not have to bear the interest and would only have to return the capital amount. “They would be eligible to get more loans once they return their main amount” said Kale.

All leading banks would give loans to self-help groups. Bank of India,Bank of Maharashtra,Solapur Gramin Bank and State Bank of India will provide loans at much lower interest rates but they will not stand to lose any amount as the state will pay the remaining amount they have earned as interest.

The minister said that the aim of this drive is to let these women have easier access to credits and improve their lives. The government had assessed the interest subsidy to the government at nearly Rs 129.01 crore over the three years.

Bankers had announced that they did not have any problem as the self-help groups were particular about repayment. The loans are expected to motivate women and enhance their performance that would ensure better returns and regular repayment of loans.

Manisha Kale from Pune’s Garib Nawaz Bachat Gat,who will avail nearly Rs 2 lakh,wants to invest in dairy. “With no interest,it would be beneficial for us and we would only have to worry about the capital amount,” she said.