Of this, India's largest public sector bank, State Bank of India (SBI) disbursed over Rs 750 crore to 6 million people through 124,000 SHGs in the state. For the current year, the bank has proposed to disburse over Rs 500 crore.
According to SBI sources, the rate of loan recovery is over 90 per cent and the bank recovered Rs 654.94 crore in 2007-08, up 18 per cent from Rs 555.73 crore in 2006-07. The default rate was only 5 per cent and that was mainly because of casualties and domestic problems, they added.
SBI has also proposed to issue SHG credit card to provide hassle-free loans for consumption as well as economic activities and SHG gold card with a credit limit of Rs 50,000 for micro enterprises to SHGs.
Meanwhile, a report by Nabard suggests that the total loan disbursed in Tamil Nadu to SHGs has come down by 42 per cent to Rs 225 crore from Rs 390 crore. These amount were sanctioned through 400,000 SHGs covering 6 million people at an interest rate of 11 per cent. Nabard has also given equity support to non-banking financial companies (NBFCs) worth Rs 2 crore.
Recently, Nabard had initiated 190 programmes in the state to cover 5,200 SHGs and 60 NGOs. As part of the programme, Rs 30,000 has been given as loan to all these SHGs.
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Besides, the bank sanctioned Rs 1 crore for capacity building programme during 2007-08. As part of its bank-linkage programme, Nabard has covered over 3 million SHGs covering more than 50 million people in the country.