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Thursday, Mar 10, 2005

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Interest subsidy for SHGs in AP

Our Bureau

HYDERABAD: As many as 2,24,635 self help groups (SHGs) in Andhra Pradesh are eligible for interest subsidy up to an extent of 6 per cent on bank loans obtained by them under an incentive scheme announced by the State Government, according to the Minister for Rural Development, Mr D. Srinivas.

Replying to a discussion on the implementation of "Indira Kranthi Padham" programme, the Minister told the Legislative Assembly on Wednesday that the incentive scheme was applicable to all loans extended by banks to SHGs after July 1, 2004 under SHG-Bank Linkage Programme.

He said SHGs that have made 100 per cent repayment of principal and interest portions of loan taken would be eligible for the incentive. The scheme was introduced to reduce the burden of SHGs.

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