'Govt mulls over loans for SHGs at less than 4 pc interest'

Co-op societies in DK, Udupi donate ` 75 lakh to Uttarkhand flood victims

Minister for Cooperation H S Mahadevaprasad has said that the government is contemplating on disbursing loan for Self Help Groups at below four per cent interest.

Speaking at a programme organised by the SCDCC Bank to hand over funds raised by the cooperative societies to Uttarkhand victims and also to distribute scholarships for the children of Navodaya SHG members here on Saturday, he said SHG members are given loan at four per cent interest. However, there is a demand to reduce the interest rate. Hence, the government will take a decision on the same shortly.

Cooperative institutions in Karnataka have responded positively to misery caused by the Uttarakhand floods. Responding to a circular issued by the ministry of cooperation, all cooperative institutions in the State are doing their best by pooling in contributions and forwarding it to the chief minister's office by August 15, he said. He said that cooperative societies are functioning without any political interference in Dakshina Kannada district.
Stating that the people of the State have expectations from the Congress-led government in the State, the Minister said that the State government is committed to implement the promises made in the election manifesto. Atleast 100 promises have already been implemented in the budget.

Minister for Forest and Ecology Ramanath Rai said that a few cooperative societies are more powerful than nationalised banks in the district. Cooperative societies are strength for villages in the country. The citizens of DK district have responded positively to the social responsibility. SCDCC Bank Chairman M N Rajendra Kumar said the SCDCC bank is on the threshold of observing centenary celebrations.

Various programmes will be organised to observe throughout the year. The members of the SCDCC Bank wants to open additional 42 branches during the year to reach 101 branches. With the support of the government, the Bank will strive to increase its branches.

He said as per the rules, the AGM of the cooperative societies should be attended by 20 per cent of its members, which is not possible in reality. Hence, the government should change the rules on 20 per cent attendance. SHGs formed through cooperative societies should be given loan at two per cent interest. This will not incur additional burden.

He said that scholarships will be given to 1000 children of Navodaya SHG members, who hail from poor background. MLAs J R Lobo, Mohiuddin Bava, former minister Amarnath Shetty and others were present.

Rs 75 lakh

The cooperative societies in DK and Udupi have pooled in around Rs 75 lakh to Uttarkhand flood victims. This includes SCDCC Bank—Rs 25 lakh, Navodaya Grama Vikasa Charitable Trust—Rs 10 lakh, employees of SCDCC Bank—Rs 3,10,748, Rajendra Kumar—Rs 1.20 lakh, Moodbidri Agriculture Cooperative Bank—Rs 5 lakh and others. The cooperative institutions are hopeful of pooling in additional Rs 25 lakh before August 15.

Comments (+)