Aleap launches new credit scheme

Mutual credit guarantee scheme to help businesswomen in small-scale sector

The Association of Lady Entrepreneurs of Andhra Pradesh (Aleap), through their credit guarantee association, launched a mutual credit guarantee fund scheme today.

Based on an Italian model, the scheme, which is launched in association with Andhra Bank and Credit Guarantee Fund Trust for Small Industries (CGTSI), will help women entrepreneurs in the small-scale sector in taking loans without any collateral security.

"Andhra Bank will provide the loans at a benchmark interest rate of 10.5 per cent," R Balakrishnan, executive director of Andhra Bank, said. He added that in the last fiscal, around Rs 950 crore of credit was disbursed to women entrepreneurs in Andhra Pradesh.

"Around 75 per cent of guarantee cover will be provided by Aleap, out of which 50 per cent of the risk will be shared by CGTSI in case of default," Padmaja, secretary of Aleap, said. N K Maini, CEO of CGTSI, said that the loan limit for this scheme would be Rs 25 lakh.

Apart from Andhra Bank, State Bank of India and State Bank of Hyderabad have also evinced interest in this mutual credit guarantee scheme, Rama Devi, president of Aleap, said.

Aleap is also getting a Rs 75-lakh grant from the European Commission for providing training to the women entrepreneurs. This grant will not only help in providing the necessary training to the entrepreneurs, but also help in marketing their products in Europe in the near future.

Aleap at present has around 1,500 members and a corpus fund of Rs 25 lakh. It has also set up an industrial estate in Kukatpally where plots are allotted to the members to set up their industries. An industrial estate in Vijayawada is also in the offing.