The women self-help groups are expected to get loans to the tune of ₹15,037 crore during the current financial year 2023-24.
Panchayat Raj Minister E. Dayakar Rao released the annual credit plan target prepared by the Society for Elimination of Rural Poverty (SERP) in association with bankers at a meeting held here on Tuesday. Speaking on the occasion, the Minister stressed the need for banks to liberally assist women in becoming entrepreneurs. Banks could relax the stipulations in this direction if need be and take steps to ensure that same interest rate was charged on these loans across the banks. Banks should also take steps to see that service charges were not levied on the SHGs as far as possible.
The Minister recalled that there was 98% recovery in respect of loans provided to women SHGs and the State was among the top States in the country providing loans to these groups. Each SHG was provided loan to the tune of ₹5.56 lakh on an average in Telangana.
There were 46.46 lakh women enrolled in 4.3 lakh SHGs and total assistance given to these groups was to the tune of ₹3,924 crore. The loan quantum which was ₹ 3,722 crore in 2014-15 at the time of formation of the State rose to ₹12,722 crore during the previous fiscal. Prompt repayment by the SHGs resulted in significant improvement in their credit worthiness as could be seen from the ₹3,500 crore increase in the annual credit plan.
At the same time, the non-performing assets too were on the decline. From 8.8% in 2014-15, the NPAs had come down to 1.62% during the previous fiscal and this had in turn prompted the banks to issue more loans to women SHGs.
Panchayat Raj secretary Sandeep Kumar Sultania stressed the need for the bankers to change their rules and procedures in line with the needs of women SHGs whose business ventures created several success stories.
