Home Banking Rs.3.82L Credit Per SHG

Rs.3.82L Credit Per SHG

Bhubaneswar: Due to collaborative efforts between the Finance Department, Mission Shakti Department and Banks, the overall credit flow to women SHGs significantly amplified to Rs 3.82 lakh.  

According to official sources, As of 30 September 2023, 1,50,942 SHGs have been credit linked with an amount of Rs 5763.86 crore, with average loan size of Rs 3.82 lakh.

Over recent years, the collaborative efforts between the State Government and the Banking institutions in Odisha have significantly amplified the momentum of credit flow to WSHGs.

This synergy has resulted in a notable growth in credit utilization by SHGs, thereby enabling the transition of Self-Help Groups (SHGs) into Small and Medium Enterprises (SMEs).

Considering the annual growth, utilization and timely repayment of loans, the target for the current financial year is set to support 4,00,000 SHGs with an amount of Rs 15,000.00 crores.

Further, a special drive was conducted in the months of November and December 2023 for collection, documentation, and sponsoring of loan applications to bank branches for ensuring timely, adequate, and hassle-free credit support to SHGs during the Rabi crop season.

The Government has once again urged banks to issue appropriate advisories to their field offices, ensuring adherence to the decision made in the SLBC meeting regarding the ‘minimum loan size to SHGs’—specifically, Rs 2 lakhs for fresh/1st linkage, Rs 4 lakhs for 2nd linkage and Rs 6 lakhs for 3rd linkage onwards, irrespective of the SHG corpus.

Acknowledging the increasing demand for credit and entrepreneurship among Self-Help Groups (SHGs), the State Government has elevated the interest subvention benefits from Rs 3 lakhs to Rs 5 lakhs, the officials said.

This enhancement allows for loans at 0% effective annual rate of interest to SHGs, both in rural and urban areas, effective from April 1, 2022. This benefit is correlated with prompt and regular repayment of loans by the SHGs. This has manifold results, like increase in credit linkage & timely repayment of loans, they said.

Further, Interest subvention claims amounting toRs.150.83 crore have been settled under the ‘Mission Shakti Loan’ – State Interest Subvention Scheme during the current financial year against the annual target of Rs 250 crore 2023-24 period. This has benefited 2.59 lakh eligible SHGs.

Banks are urged to actively educate their field functionaries about the intricacies of the Interest Subvention Scheme so that SHGs are well-informed and can seamlessly access the advantages offered under the State’s interest subvention initiative.

Moreover, to ensure the last-mile delivery of banking services in unbanked and under-banked Gram Panchayats, the Department of Mission Shakti has partnered with various banks, including OGB, SBI, UGB, YES, ICICI, UCO, Union, PNB, Canara, Axis, Indian Bank, Bank of India, and HDFC Bank.

These partnerships involve engaging Women Self-Help Groups and Federation Members as Business Correspondent Agents (BCAs).

Currently, a total of 2318 BCAs are operational across the State, facilitating transactions amounting to Rs. 254.57 crore during the current fiscal year (2023-24), the officials say.