India Post to launch micro credit in 8 states

New Delhi, Sep 29 (UNI) After successfully running a pilot in five districts of Tamil Nadu, India Post is now poised to disburse micro-credit to women self help groups in eight states and the North East in alliance with NABARD, government said today.

Post offices in Tamil Nadu have disbursed credit of Rs 1.35 crore to 165 such women groups without reporting any default, the Communication Ministry said. The states selected for running the scheme after the Tamil Nadu success are Bihar, Gujarat, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Orissa and Uttar Pradesh, the Ministry added.

Of nine per cent interest charged on loans to the women groups, India Post gets three per cent and NABARD six per cent.

Micro credit scheme helps postal department in cross selling its financial and insurance services to members of self help groups, thus strengthening their financial and life security.

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