Banks to increase loan for self-help groups

Kolkata, June 5 (UNI) Banks will increase the quantum of loan by five per cent for self help groups, the area Chief Minister Buddhadeb Bhattacharjee identified as most crucial for generation of employment in the state.

At a meeting with Finance Minister Asim Dasgupta, Reserve Bank of India(RBI) Rakesh Mohan and representatives NABARD, State Bank of India and three other banks agreed to increase loans to 65 per cent from 60 per cent.

"The meeting was postive and fruitful. They have agreed to increase loan by five per cent," Dr.Dasgupta told reporters.

The Chief Minister had recently underscored the need to create more self help groups and activate them with bank finance to improve the economic condition of the poor, particularly in 4,500 villages, identified as most backward areas in the state.

As the Seventh Left Front Government came to power, for the first time a separate Ministry for self help and self employment had been created.

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