Helping rural women raise income

Tirupati: The concept of transforming self-help groups (SHGs) in the state to self-business groups (SBGs), a novel idea of Andhra Bank Managing Director and CEO Suresh N Patel, was going in right direction.

Speaking to The Hans India on the sidelines of his visit to the temple city on Friday, the MD said the scheme aimed at benefitting rural women to start their own businesses, has completed exactly one month. Named after the founder of Andhra Bank as “Pattabhi Sitaramayya Self Business Group Scheme” has so far benefitted 200 groups with a loan volume of Rs 12-13 crore.

Under the scheme, he said loans will be provided to member groups with no collateral security. The MD added minimum four-five members of any SHG which is having an experience of five years can come and form a SBG to take individual or group loans from the bank.

“Bank will provide training to members, which will help them in choosing a field of business, how to proceed with their business among other things,” said Suresh N Patel. Each group will be given a maximum of Rs 25 lakh loan.

“If there are individual loans one may get more, and one may get less depending on their business proposal, but each group total will not exceed the upper limit of Rs 25 lakh,” he added. As SHG members they will get a limited amount which can be spent on immediate needs and their income levels will not grow.

Under the scheme, the SBG members will be encouraged to take up economic activity, it could be agriculture or allied activities or MSME or any other. Once their economic activity increases their income level will also go up, which will be really a good for them, observed the MD.“It is based on asset creation.

As the preliminary objective is to raise the income level of members, the recovery also will be good. When members jointly do a business, through backward and forward linkages they will manage together, cost will come down with rise in income level,” he explained.

By V Pradeep Kumar