Patna: Ten lakhs Self Help Groups would be formed in Bihar in next the five years to weed out poverty.
As a first measure, five lakh SHGs would be constituted which would benefit 1.25 crore poor families, deputy Chief Minister Sushil Kumar Modi said on Wednesday.
The SHGs would get loan from banks at 11 to 12 per cent interest, he said at the state livelihood promotion society here.
SHGs which cleared loans on time would be eligible to receive loans at 7 per cent, he said.
"With SHGs achieving success in Andhra Pradesh and Tamil Nadu we want to put the experience in use in Bihar to ensure that banks give more and more loans to them," Modi said.
Citing figures, he said, while banks gave Rs 6706 crore in loans to 5.64 lakhs SHGs in Andhra Pradesh in 2009-10 those in Bihar received Rs 295 crore, which should be raised.
Rural Development minister Nitish Mishra said there were 1.26 crore families below the poverty line in the state which was 55 per cent of its total population.