WSHGs demand banks to enhance credit flow, loan at 4% interest

Bhubaneswar, Feb 11 (PTI) Demanding stringent actionagainst the micro-finance institutions (MFI) run by certainNGOs, women self-help groups (WSHGs) in Orissa today askednationalised banks to increase credit flow to them.

A large number of WSHG members under the banner of AllIndia Democratic Womens'' Association (AIDWA) staged ademonstraion here demanding simplified loan sanction procedurefor the WSHGs.

Alleging that most of the MFIs run by NGOs simplyexploit the WSHGs, they said that such non-governmentorgnisations take advantage of nationalised banks lack ofcredit flow to rural and micro sectors.

"The MFIs run by NGOs do not adhere to the guidelinesissued by the RBI, the NABARD and other monitoring agencies sofar interest rate is concerned," claimed AIDWA''s statesecretary Tapasi Praharaj adding that such institutions chargemore than 28 per cent interest and some times more than 100per cent.

In a memorandum to the convenor of the State LevelBankers Committee, they said that many members of the WSHGshve committed suicide and were exploited due to "misdeeds" ofthe MFIs.

They demanded that banks provide loans to WSHGs at therate of 4 per cent and earmark a specific day of the week forwomen groups.