Andhra Bank to launch 2 new schemes

Andhra Bank will introduce new schemes aimed at the self-help groups (SHGs). The two schemes, Swapping Debts of SHGs and Bridge Loans, will be launched on May 18 at Rajahmundry.

Swapping Debts of SHGs benefits the members of self-help groups who are suffering from private lenders by borrowing loans for huge interest rates ranging between 48 per cent and 58 per cent, The scheme will relieve those members from crux of private lenders or micro finance institutions (MFI).

"The bank wants to change the lives of SHGs through this scheme," said YPrasad, deputy general manager (East Godavari region), Andhra Bank in East Godavari Region.

He said that the bank selected East Godavari for implementing the scheme as a pilot project. The banks will implement the scheme in 83 villages and semi-urban areas. It has formally selected Jegurupadu and Sitaramapuram villages.

A village will be selected by the respective branch in the district. The branch managers will make a survey in the identified villages in coordination with the District Rural Development Agency (DRDA) and prepare a micro credit plan (MCP).

The branch managers will collect proofs and documents from private lenders or MFIs after disbursing the loan amount.

The MCP includes credit needs for economic activities amount required for education, food, health and other needs of families of SHGs. The SHGs can repay the loan amount in 60 months at an interest rate of 3 per cent.

Bridge Loans was aimed at the beneficiaries of the Indiramma Housing Scheme in the district. The banks will disburse bridge loan of Rs10, 000 each as a part of MCP. The bank has identified 3,000 women (300 groups) for this scheme. It will disburse Rs 3 crore bridge loans to SHGs on May 18.