NABARD launches new SHG programme in TN

Chennai, Apr 5 (UNI) The National Bank for Agriculture and Rural Development (NABARD) has launched a pilot project for linking Self Help Groups (SHGs) with post offices in five districts of Tamil Nadu.

The project, first of its kind in the country, was launched in Sivagangai, Pudukottai, Tiruvannamalai, Thanjavur and Thiruvarur districts of the state.

''NABARD has signed a Memorandum of Understanding (MoU) with the Chief Post Master General's Office for sanctioning loans from post office to SHG across these districts,'' NABARD Chief General Manager K V Raghavulu told newspersons here today.

Under the new programme, NABARD would provide Rs 34 lakh to the Department of Posts by way of revolving fund assistance for retail lending, he said adding loans would be sanctioned by the post office to SHGs at nine per cent interest rate and repay the amount in 24 monthly instalments.

Mr Raghavalu said the postal department would retain a service fee of three per cent and pass the balance to NABARD.

Under the project, NABARD would bear the entire risk in case of default of SHGs, he said adding ''we have so far released Rs 11.04 lakh to 46 SHGs, identified in Sivagangai and Pudukottai districts of the state.

On the NABARD-GTZ Grameen Tatkal scheme, he said with the objective of attempting a paradigm shift to a family centric approach in lending, NABARD and GTZ have forumulated this scheme, which would comprehensively address the needs of all rural families, taking into account their variant cash flows.

''The scheme is being implemented in Sivagangai through Pandyan Grama Bank and in Salem through the Salem CCB on a pilot basis till December 31 2008,'' he said.

While Salem CCB has disbursed Rs 84 lakh to 325 families, Pandyan Grama Bank disbursed Rs 1.86 crore to 333 families in the identified districts,'' he added.

UNI