C'garh govt reduces interest rate on loan for women SHGs

Chhattisgarh government has reduced the rate of interest on business loans given to women self-help groups (SHGs) from 6.5 per cent to 3 per cent.
"Complying with the announcement made by Chief Minister Raman Singh during budget session, the rate of interest on business loans given to women SHGs has been reduced from 6.5 per cent to 3 per cent only from new fiscal 2013-14," KDP Rao, Principal Secretary of Women and Child Development Department, said here today.
"It will benefit over nine lakh women associated with 74,000 women SHGs of the state," the official added.
Now, women SHGs can avail loan facility of up to Rs 2 lakh from Chhattisgarh Mahila Kosh as well as other commercial and cooperative banks at 3 per cent.

The difference between banks' rate of interest and the interest rate on loans for self-help groups (3 per cent) will be reimbursed by the state government, Rao said.
The initiative will allow the women SHGs to easily avail the loan facility for self-employment and thereby become self-dependent, he said.
The officials of Integrated Child Development Programme will collect the applications from SHGs to submit the same at nearby banks, and help them through the process of loan approval, Rao said.
Besides, the surveyors of Women and Child Development Department have been instructed to inform the SHGs about the recent decision of the government and motivate them to avail the loan facility for commercial and business-related activities.