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Microcredit catches on in Indian states
Chennai, July 09: Microcredit is gaining ground in the states that saw very little of it earlier. Orissa, Rajasthan, Madhya Pradesh, Bihar and north eastern states saw more self help groups (SHGs) and more microcredit flow from the banks in `02-03, than in all the previous years put together.
Chennai, July 09: Microcredit is gaining ground in the states that saw very little of it earlier. Orissa, Rajasthan, Madhya Pradesh, Bihar and north eastern states saw more self help groups (SHGs) and more microcredit flow from the banks in ’02-03, than in all the previous years put together.
Meanwhile, the southern states, along with Uttar Pradesh and Maharashtra, which have been traditionally doing well in this area, continued to maintain the trend in ‘02-03 according to a study, ‘Progress of SHG Bank Linkage in India ‘02-03’, done by the National Bank for Agriculture and Rural Development. Microcredit refers to small loans (averaging Rs 25,000) given by banks to small groups consisting of not more than 20 members.
Orissa which had 20,553 credit-linked SHGs attracting about Rs 20 crore till March 31,‘02, more than doubled the cumulative figures in ‘02-03 to 42,272 groups and Rs 51 crore of loans. Similarly, Rajasthan increased its credit-linked SHGs to 22,742 (10,178 till March ‘02) and loans to Rs 46.25 crore (Rs 23.05 crore). Bihar’s SHGs shot up to 8161 (4204) and loans to amounted Rs 12.09 crore (Rs 8.27 crore). SHGs in Madhya Pradesh grew to 15,271 (7290) and loans to Rs 30.74 crore (Rs 15.15 crore). SHGs in the north eastern region expanded to 4069 (2579) and loans to Rs 6 crore (Rs 3.4 crore).
CR Patnaik, CGM, Nabard said, the growth in these non-traditional regions was significant because it happened thanks to the voluntary efforts by NGOs and SHGs themselves, rather than by government push, as in the case of Andhra Pradesh. “In fact, many who have some reservations about the sustainability of growth that came thanks to a government push, are certain about the sustainability of this system in these new regions,” he said.
Meanwhile, the south continues to maintain its lead in this segment. More than half of credit-linked self help groups in the country are from the south. Over 78% of the total microcredit has flown to southern states. Andhra Pradesh has 2.81 lakh SHGs claiming Rs 975.38 crore by way of loans cumulatively. Tamil Nadu has 98,410 SHGs , borrowing Rs 425.5 crore.
Other states that have been doing well are Uttar Pradesh and Maharashtra. UP has 53,696 SHGs and cumulative bank loans of Rs 87.46 crore. Maharashtra has 28,065 SHGs claiming Rs 69.75 crore. Bureau Report
Orissa which had 20,553 credit-linked SHGs attracting about Rs 20 crore till March 31,‘02, more than doubled the cumulative figures in ‘02-03 to 42,272 groups and Rs 51 crore of loans. Similarly, Rajasthan increased its credit-linked SHGs to 22,742 (10,178 till March ‘02) and loans to Rs 46.25 crore (Rs 23.05 crore). Bihar’s SHGs shot up to 8161 (4204) and loans to amounted Rs 12.09 crore (Rs 8.27 crore). SHGs in Madhya Pradesh grew to 15,271 (7290) and loans to Rs 30.74 crore (Rs 15.15 crore). SHGs in the north eastern region expanded to 4069 (2579) and loans to Rs 6 crore (Rs 3.4 crore).
CR Patnaik, CGM, Nabard said, the growth in these non-traditional regions was significant because it happened thanks to the voluntary efforts by NGOs and SHGs themselves, rather than by government push, as in the case of Andhra Pradesh. “In fact, many who have some reservations about the sustainability of growth that came thanks to a government push, are certain about the sustainability of this system in these new regions,” he said.
Meanwhile, the south continues to maintain its lead in this segment. More than half of credit-linked self help groups in the country are from the south. Over 78% of the total microcredit has flown to southern states. Andhra Pradesh has 2.81 lakh SHGs claiming Rs 975.38 crore by way of loans cumulatively. Tamil Nadu has 98,410 SHGs , borrowing Rs 425.5 crore.
Other states that have been doing well are Uttar Pradesh and Maharashtra. UP has 53,696 SHGs and cumulative bank loans of Rs 87.46 crore. Maharashtra has 28,065 SHGs claiming Rs 69.75 crore. Bureau Report