Maharashtra may offer soft loans to SHGs at 6%

Maharashtra government is planning to offer loans at 6% to Self-help Groups (SHGs), on the lines of its recent decision to offer soft loans to farmers. Besides, the state government is also planning to waive interest rates for tribals' SHGs.

"There is huge difference in Human Development Index (HDI) rates in urban and rural areas. As compared to Mumbai, HDI rates of Dhule, Nandurbar, Beed, Latur, Jalana and Nanded districts are between 20% and 22%. To bridge this gap between Mumbai and other villages, it is necessary to improve financial conditions of those families, who are below poverty line and formation of SHGs of such families is essential to uplift their living standard. Considering this fact, the state government is planning to offer soft loans at 6% with subsidy to the self help groups if they repay loans promptly," Maharashtra Finance Minister, Jayant Patil, said.

With the objective of raising incomes of families Below Poverty Line (BPL) upto aminimum of Rs 2,000 per month, the central government has been running the Swarna Jayanti Gram Swarojgar Yojana (SGSY) since 1999. This is an overall development programme for BPL families and Self Help Groups have been formed across Maharashtra as per this programme. They are provided 75% and 25% funds, respectively from the central and state governments.