Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 150
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 151
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 148]
Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 181]
LATEST NEWS UPDATES | Centre for easy credit to rural population-Urmi Goswami

Centre for easy credit to rural population-Urmi Goswami

Share this article Share this article
published Published on Sep 6, 2012   modified Modified on Sep 6, 2012
-The Economic Times

The Centre plans to make bank creditaccess easier for rural population, especially in states were poverty is high.

In Uttar Pradesh, Madhya Pradesh, Rajasthan, Bihar, Jharkhand, Chhattisgarh, Maharashtra and Gujarat, the gap between credit available to self help groups and the demand for credit is stark. At present, 80 per cent of all bank support to SHGs is in Andhra Pradesh, Tamil Nadu, Karnataka and Kerala.

In Uttar Pradesh, Madhya Pradesh and Rajasthan, credit disbursal figures would account for 10 per cent to 15 per cent demand. The demand for credit in these states is 14,612 crore in 2012-13, while disbursement in 2011-12 is only 3,384 crore.

The high demand in these states clearly indicates that there has been an expansion of self-help groups. However, the low level of credit disbursal presents a worrying situation. Without expansion in bank linkage, these groups will have little or no impact in improving rural livelihoods. "The low level of credit disbursement reflects both administrative infirmities in the states as well as a chalta hai approach of the banks," rural development minister Jairam Ramesh said.

The adverse impact of banks' reluctance in sanctioning loans to self help groups is reflected in the inability of the UPA government to make good on its intervention to improve and augment rural livelihoods. Based on feedback, the rural development ministry finds that there is a reluctance at the level of bank branch managers to sanction loans to self help groups as there is a risk perception in lending without collateral.

Ramesh has written to finance minister P Chidambaram, requesting him to ask banks to step up linkages to self help groups, particularly in 15 high poverty states.

The rural development minister has said that banks "need to provide proper orientation to the their staff at the field level in the rural areas to see providing loans to self help groups as sound business opportunity, based on proven track record of timely payment."

For a government that is seeking to restore its aam aadmi credentials, a higher credit assistance for self help groups, which are key to improving rural livelihoods, would be welcome. With many of these poorly performing states heading for elections over the next year or so, the UPA government would like to be able to showcase its seriousness in improving rural livelihoods.

The Economic Times, 6 September, 2012, http://economictimes.indiatimes.com/news/economy/finance/centre-for-easy-credit-to-rural-population/articleshow/16273036.cms


Related Articles

 

Write Comments

Your email address will not be published. Required fields are marked *

*

Video Archives

Archives

share on Facebook
Twitter
RSS
Feedback
Read Later

Contact Form

Please enter security code
      Close