Increase loan facility to SHGs says MP GVL Narasimha Rao

Guntur: MP GVL Narasimha Rao said that out of the 34 lakh women SHGs, which received bank loans under the Central government's NRLM and NULM (National Rural and Urban Livelihoods Missions) last year, 8.4 lakh belong to the State.

He thanked Prime Minister Narendra Modi for last year's outstanding loans of Rs 1.20 lakh crore by banks to women SHGs.

Speaking at zero hour in the Rajya Sabha on Thursday, Narasimha Rao said banks offering loans to SHGs at low rate of interest under the Central government scheme has quadrupled in the last seven years.

He said Narendra Modi had directed public and private sector banks to extend collateral-free bank loans of up to Rs 20 lakh to self-help groups under the NRLM scheme, but banks were only giving bank loans up to Rs 10 lakh. He requested the Central government to take steps to increase the quantum of loans to Rs 20 lakh.

He complained that SHGs in AP are mobilised by ruling parties to attend their political events and condemned such unscrupulous actions and requested the Central government to issue directions to the AP government not to do so in future.