NABARD targets 21 lakh credit-linked SHGs in 2017-18
G.R. Chintala, CGM, Micro Credit and Innovations Department, NABARD, speaks about the bank’s ‘Self Help Group Bank Linkage Program’, which has completed 25 years in the current FY:
The ‘Self Help Group Bank Linkage Program’ of NABARD now covers 100 million rural families through 8.5 million SHGs in India with savings deposits of `161 billion and loan outstanding of over `616 billion. During 2016-17, bank loans worth `388 billion were disbursed to 1.9 million SHGs. The program has reached the milestone timeline of 25 years. Launched in 1992 with a target of linking 500 SHGs in a year’s time, it is today the world’s largest microfinance program.
BANKS & WOMEN SHGS
Says G.R. Chintala, CGM, Micro Credit and Innovations department at NABARD: “There are 17.16 lakh credit-linked and 73.22 lakh savings-linked exclusive women SHGs. State Bank of India has the largest number of savings-linked exclusive women SHGs - 625,048, having total savings of `18.23 billion, followed by Indian Bank (372,968 SHGs, `10.42 billion) and Union Bank of India (370,026 SHGs, `6.14 billion) as of 2016-17.”
He adds: “On the other hand, ICICI Bank leads among the private banks with 252,696 exclusive women savings-linked SHGs, having `2.42 billion in savings, followed by HDFC Bank (167,978 SHGs, `1.56 billion) and YES Bank (134,359 SHGs, `1.04 billion). The top 3 cooperative banks are West Bengal State Cooperative Bank, followed by 2 DCCBs from Maharashtra: Kolhapur DCCB and Pune DCCB.”
NABARD provides grant support to Self Help Promoting Institutions (SHPIs), which include NGOs, RRBs, cooperative banks, IRVs, farmers’ clubs, SHG federations, PACS and NGO-MFIs for promotion, nurturing and credit linkage of SHGs. Chintala states: “NABARD has cumulatively sanctioned grant support of `3.62 billion for formation of 8.11 lakh SHGs. We have cumulatively released `1.28 billion against sanction for promoting 5.41 lakh groups.”
The central government has planned, as part of the existing NRLM, to facilitate women-led SHGs by giving them bank loans of over `100,000 and up to `300,000 for undertaking various activities at easy interest rates.
All women SHGs that avail off loans up to `300,000 from banks are charged interest at the rate of 7% per annum and they also get additional interest subvention of 3% of timely repayment. The government has also facilitated availing of bank credit of around `300 billion per year. This is now being targeted to be doubled to almost `600 billion per year till 2019.
G.R. Chintala points our that NABARD has been proactive in providing grant support for promotion, nurturing and credit linkage of SHGs