SHGs: Co-op bank yet to give interest-free loans

While self-help groups linked with the PDCCB are not yet aware about the scheme,the bank is yet to complete the formalities of screening the SHG members who have been regular with payments for six months.

A senior official of the PDCCB said that with 296 branches of the bank and nearly 300 SHGs linked with these banks,it is a difficult task to monitor the repayment of each group.

Though the scheme was announced in early August,none of the SHGs has stood to benefit yet. With the claim of four per cent to be borne by the government through Mahila Arthik Vikas Mahamandal (MAVIM) submitted only a month back of 200 SHGs,it will take a long while to complete the process,said the officer.

Though the Cooperatives and Marketing Minister Harshvardhan Patil is keen for a special drive from January to spread awareness about the scheme for SHGs,the actual disbursement will take a long time. The minister had announced the scheme saying it would benefit around 17 lakh women in rural areas and 1,42,218 SHGs in the state.

A senior officer from MAVIM said the PDCCB has submitted a claim for Rs 1.91 lakh a month ago for around 200 SHGs. “We have to assess all the claims and it will definitely take time. They have submitted it only last month so from our side too it is bound to take time for verification,” he said.

MAVIM,which has got nearly Rs 3 crore from the government,maintains that they have cleared the claims of 43 SHGs,amounting to Rs 80,138. “It is a very lengthy process as there are SHGs which started way back in 1999-2000 and their records have to be assessed. Also,the four per cent scheme is only for those who take amounts of up to Rs 2 lakh,” said another officer.

The government’s move was aimed at easing the burden on SHGs,as many had small capital income and the interest would make it more difficult for them. The scheme was to encourage them. Around 45,000 SHGs were to get Rs 50,000 while 72,000 SHGs were to get Rs 1 lakh and 18,000 were to get Rs 2 lakh disbursement in the state. These groups will be eligible for higher loan amount once they repay their loans on time. The minister said that the objective 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.