Union Bank extends Rs 253 crore aid thru SHGs for rural initiatives

Mumbai, Nov 24 (UNI) Union Bank of India today announced it has extended the credit assistance upto Rs 253 crore till October-end this year on initiatives in rural area for encouraging empowerment of the local population using SHG (self help group) route.

The Bank has followed the SHG route in extending finance which has proved quite effective and consequently it has formed nearly 80,000 SHGs out of which approximately 47,000 are credit linked, a press release issued by the Bank said here said.

The Bank has found a novel application of the SHG model by introducing it in Mumbai- the first such initiative in a metro. A beginning was made in 2005 and today there are 213 SHGs in Mumbai making 3000 persons self-reliant.

Meanwhile, the Bank organized a 'Vyapar Mela' at Chembur in the North-east Mumbai. This was a coming together of members of the SHGs and traders engaged in the sale of the products produced by the members of the SHG. It seeks to facilitate access to markets by the SHGs by organizing such meetings. The SHGs, by directly dealing with the traders, are able to get an improved return.

Union Bank is also training and sensitizing the staff members to understand the needs of the urban poor. As part of its continuing initiatives, the Bank is also planning to train SHG members for skill development, maintenance of accounts, book keeping etc.

It may be recalled that the Bank launched its latest initiative Union Mitr- the provision of financial education services at 51 centres on the occasion of its Foundation Day recently.

''The SHG method of financing the needs of the under privileged and needy has proven to be a success which we believe can be replicated in the urban and metro areas also. In the case of SHGs, the Bank is able to inculcate the saving habits among the members and has been promoting them since 1992,''said Mr M V Nair, Chairman and Managing Director of Union Bank speaking on the occasion.

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