Vijayawada: MSMEs and rural poverty alleviation minister Kondapalli Srinivas on Thursday welcomed the Andhra Pradesh Grameena Bank (APGB)’s decision to relax loan norms for self-help groups (SHGs), whose membership falls below 10 due to the death or migration of members.
In this regard, the APGB has issued an internal order No. 152 framing new guidelines for special relaxation in such cases.
Under the amended guidelines, SHGs with at least eight active members can avail themselves of repeat doses of loans if the reduction in membership is solely due to death or migration.
However, such groups must have a clean record, with no irregularities or outstanding dues, and must have maintained a proper repayment discipline.
As per the new guidelines, eligible SHGs must submit a special resolution and an undertaking to avail themselves of the relaxation. Groups benefiting from the concession will have to restore their membership to at least 10 within six months of taking the new loan.
Previously, SHGs in rural areas often faced difficulties in securing repeat loans when their membership fell below 10 despite maintaining a good repayment record. The relaxation is expected to help such groups continue their livelihood and income-generating activities.
The minister said loans to self-employed women are an important instrument for promoting livelihoods and women’s economic empowerment. The government’s objective is to strengthen women’s SHGs and create an entrepreneur in every household, he pointed out.
Srinivas appealed to the State-Level Bankers’ Committee (SLBC) and banks in Andhra Pradesh to follow APGB’s example by relaxing the 10-member norm for SHGs with good repayment records for renewal of loans.
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