Banks lend Rs 171cr to SHGs in East Godavari

Various banks have advanced about Rs 170.98 crore to 25,770 self help groups (SHGs) in East Godavari district during the just-concluded financial year 2005-06, surpassing the target of Rs 167 crore for 23,800 groups.

Fourteen nationalised banks, along with Vysya Bank, South Indian Bank, Bank of Maharashtra and District Co-operative Central Bank, made their contribution to the efforts of the administration.

District Rural Development Agency (DRDA) project director Ch Kumara Swamy, said the government had sanctioned about Rs 5.50 crore as loan to SHGs at 25 paisa interest rate.

He said "banks have amassed about Rs 303.52 crore from thrift funds put in by the SGHs in the district besides earning service charges from Nabard for refinancing the government schemes. As the lead bank in the district, Andhra Bank stood first in providing the highest amount of loans to SGHs. The bank advanced Rs 65.28 crore to 9,431 SHGs followed by the State Bank of India with Rs 50.55 crore to 7,199 SHGs."