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Chhattisgarh govt slashes interest rate on loan for women SHGs

 RAIPUR: The government of Chhattisgarh has slashed the rate of interest on business loans given to women self-help groups (SHGs) from 6.5 per cent to 3 per cent.

 
KDP Rao, Principal Secretary of Women and Child Development Department said, ''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.''
 
As per the official statement, ''it will benefit over nine lakh women associated with 74,000 women SHGs of the state.''
 
The women SHGs can now avail loan facility of up to Rs 2 lakh from Chhattisgarh Mahila Kosh and other commercial and cooperative banks at 3 per cent.
 
Rao stated that the difference between banks’ rate of interest and the interest rate on loans for self-help groups of 3 per cent will be reimbursed by the state government.
 
He maintained that the initiative would pave way for the women SHGs to have easire acces to loan facility for self-employment and thereby making them independent.
 
Rao expressed that the officials of Integrated Child Development Programme will be collecting the applications from SHGs to submit the same at nearby banks, and help them with the process of getting their loans approved.
 
In addition, the surveyors of Women and Child Development Department have been directed to inform the SHGs with regard to the recent decision of the government and further motivate them to take up loan facility for commercial as well as business-related activities.