Commercial banks in Odisha to extend credit of Rs 5 crore at SHG 2.62 lakh till January – The New Indian Express

By Express press service

BHUBANESWAR: Commercial banks operating in the state have extended credit support of Rs 5,635.30 crore to over 2.62 lakh Women Self Help Groups (WSHGs) in the state till the end of January 2022. The state government has set the annual credit link target for the current financial year at Rs 6,002.52 crore targeting SHG 2,80,150. Out of the total target, 2,62,836 SHGs were granted credit amounting to Rs 5,635.30 crore, which is 94% of the physical and financial target.

According to a report by the State Level Bankers Committee (SLBC), as many as 58,879 loan applications were pending at banks for approval and disbursement till the end of February. Principal Finance Secretary Vishal Dev has urged banks to quickly dispose of pending applications. He further advised the banks to increase the SHG loan amount per SHG to Rs 4 lakh.

The average loan size of each SHG stands at Rs 2.14 lakh as many of them do not take advantage of the total limit sanctioned by the banks. The state government has commissioned the Mission Shakti department to analyze the capabilities of SHGs for higher credit linkage and share details with banks to increase the average loan ticket size.

In view of the growth of credit links and repayment of the loan by SHG, the state government interest subsidy for the Mission Shakti loan has been set at Rs 200 crore for 2021-22 from Rs 150 crore in 2020 -21. As of January 31, 2022, claims amounting to Rs 107.30 crore were settled by the department at the end of January 2022.

In 2019-20 and 2020-21, goods and services worth Rs 2,800 crore were procured from various Mission Shakti self-help groups. Besides paddy supply, WSHG members have been engaged as correspondent banks. Mission Shakti has signed memorandums of understanding with banks for the engagement of WSHG members as BC agents. Seven banks, including SBI, have hired 2,203 WSHG members as BC agents. The state government has advised the remaining banks to sign the Memorandum of Understanding with Mission Shakti as soon as possible to engage SHGs as BC agents in unbanked GPs.

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