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The loan can be availed for any petty trade to be undertaken by the women.

CHENNAI, Dec. 11

THE Tamil Nadu Backward Classes Economic Development Corporation gets a loan at one per cent rate of interest, but individual beneficiaries under a micro-credit scheme for women have to pay an interest of 10 per cent.

According to a State Government order, the Tamil Nadu Backward Classes Economic Development Corporation has been permitted to avail itself of a Rs 18-crore term loan from the National Backward Classes Finance and Development Corporation, for which the State Government has even extended a guarantee.

This money will be available at an interest rate of one per cent, which the Tamil Nadu Backward Classes Economic Development Corporation will lend to cooperative banks at an interest rate of three per cent.

The cooperative banks, in turn, will lend to self-help groups at six per cent rate of interest, which groups will in turn lend to beneficiaries at an interest not exceeding 10 per cent.

The loan, according to the GO, can be availed for any petty trade to be undertaken by the women. The maximum loan amount that will be available is Rs 2000 and group activities up to Rs 20,000. The loan has to be repaid in 12 months with a two-month moratorium.

There will be a penal interest of five per cent in addition to the normal rate of interest for the period of default in repayment.

Those with an annual family income less than Rs 31,952 in rural areas and Rs 42,412 in urban areas will be eligible for availing loan under the scheme.

The self-help groups are responsible for recovering the monies from the members and remitting these amounts to the co-operative banks. The self-help groups will be responsible for repayment of the loan on the dates specified irrespective of whether the beneficiaries paid them the dues or not, the GO says.

The GO has asked the Tamil Nadu Backward Classes Economic Development Corporation to implement the micro credit scheme through the sub-channelising agencies and take steps to recover the loan and interest amount from the beneficiaries as Government guarantee is involved.

According to the order, Tamil Nadu Backward Classes Economic Development Corporation has prepared a plan for 2002-03 for implementing a micro credit and other five other schemes, for which it has sought financial assistance from the National Backward Classes Finance and Development Corporation.

The national corporation has agreed to allocate Rs 30.15 crore to State corporation for the six schemes subject to a State Government guarantee being given.

The national corporation will give 90 per cent of the amount and the State corporation has to shell out the balance amount.

The GO points out that the Tamil Nadu corporation has sought Rs 2 crore as additional share capital and says the Government has asked the corporation to use its own funds.

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