Financial Daily from THE HINDU group of publications
Friday, Oct 15, 2004
Financial Daily from THE HINDU group of publications Friday, Oct 15, 2004 |
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Money & Banking
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Public Sector Banks Industry & Economy - Social Welfare Andhra Bank ties up with NGO to help women entrepreneurs Our Bureau
Mr T.S. Narayanasami (left), Chairman and Managing Director of Andhra Bank; Mr R. Balakrishnan, Executive Director; and Mr M.K. Maimi, CEO, CGTSI; at the launch of Mutual Credit Guarantee Fund Scheme in Hyderabad on Thursday. - - A Roy Chowdhury
Hyderabad , Oct. 14 THE ACGA (ALEAP Credit Guarantee Association) joined hands with Andhra Bank and Credit Guarantee Fund Trust for Small Industries (CGTSI) to launch Mutual Credit Guarantee Fund Scheme here on Thursday. The CGTSI has entered into a risk-sharing arrangement with ACGA for the guarantees extended by the latter. This would augment credit flow to small-scale units and other ventures initiated by women entrepreneurs. ACGA is an arm of Association of Lady Entrepreneurs of Andhra Pradesh, an organisation supporting women entrepreneurs in a variety of ways. Loans under the scheme would be given at an interest rate of 10.5 per cent. No collaterals were needed for securing loans up to Rs 25 lakh. The CGTSI would give counter guarantee for guarantees extended by ACGA. The ACGA would screen the proposals from its members and recommend the same to banks for financial assistance depending on the merit of such schemes. Addressing a gathering at the launch of the scheme, Mr Balakrishnan, Executive Director of Andhra Bank, said the bank would open a rural development institute in Orissa on the lines of similar institutes it runs in Andhra Pradesh and Kerala. Mr A.L. Nageshwar Rao, General Manager of the bank, highlighted the need for repaying the loans. This was important in winning the confidence of the banker. Ms Ramadevi K, President of ALEAP, said the scheme handheld women entrepreneurs and eased the process of securing loans from the bank. The scheme emulated the Italian model where seven lakh industrial enterprises were benefited. The insolvency rate was around 2 per cent (for projects taken up in the scheme) as against the national average of 10 per cent there, an ALEAP officer-bearer said. "It can be a model for development of such schemes in India," she said.
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