NABARD micro finance assistance to cross Rs.1500 crore in Karnataka

Bangalore, Apr 8 (UNI) Notching up impressive strides in microfinance, by assisting self help groups (SHG), National Bank for Agriculture and Rural Development (NABARD) aimed to cross cumulative credit to the tune of Rs 1500 crore to SHGs in Karnataka during 2006-07.

Talking to newsmen here NABARD Chief General Manager for Karnataka B B Mohanty said during the year the total number of SHGs in the state would touch 325,000 with the credit link extended to 250,000 of them. Last fiscal the total number SHGs touched 297,000 with 58,711 fresh groups provided credit link with the total assstance of Rs.392 crore.

The cumulative credit to SHGs touched Rs.944 crore last year.

Under microifinance, the recoverate was more than 95 per cent he added. The programme was being implemented through 53 banks, involving more than 600 Non-Governmental Organisations.

Mr Mohanty said that the Bank was awaiting directions and guidelines from the Centre for introduction of seven per cent loan to farmers, announced in the budget by Union Finance Minister P Chidambaram, through commercial, regional rural banks and cooperatives. With regard to the four per cent interest rate on cooperative loans announced by the State government, he said NABARD was not aware of the manner it would be interlinked with the reduced interest rate announced by the Centre. However he said that the State government had already released Rs 800 crore subsidy to cooperative banks for interest rate cuts and another over Rs 200 crore was due to the cooperatives.

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