MP GVL Narasimha Rao appeals for increase in loan facility to SHGs up to Rs 20 lakh as collateral-free loans.
Speaking in the Zero Hour in the Rajya Sabha, Member of Parliament Sri GVL Narasimha Rao stated that of the 34 lakh women SHGs which received bank loans under the Central Government’s NRLM and NULM (National Rural and Urban Livelihoods Missions) last year, 8.4 lakh are in Andhra Pradesh alone.
MP GVL Narasimha Rao thanked Prime Minister Narendra Modi for last year’s outstanding loans of a whopping Rs. 1.20 lakh crore by banks to women SHGs. GVL Narasimha Rao stated that low-interest bank loans to SHGs under the central government scheme has quadrupled in the last seven years.
MP GVL said the central government, led by Prime Minister Narendra Modi, had directed public and private sector banks to extend collateral-free bank loans of up to Rs 20 lakh to self-help groups under the NRLM scheme, but banks were only giving bank loans upto Rs.10 lakh. He has requested the Central government to take steps to increase the quantum of loans to Rs.20 lakh.
Mr. GVL Narasimha Rao urged the Central government to strictly enforce the banks’ limit of Rs 20 lakh as self-help groups have been successful in repaying loans with a repayment rate of 98 per cent. The NPA rate of loans to SHGs has declined from 9.6% in 2014 to 2.8% at present.
Informing Parliament that women SHGs in Andhra Pradesh are mobilised by ruling parties to attend their political events, Mr. GVL Narasimha Rao condemned such unscrupulous actions and requested the Central government to issue directions to the Andhra Pradesh state government not to do so in the future.
