Credit Linkage to SHG's

Bank credit is one of the most critical inputs for empowering SHGs and to reduce rural indebtedness. Banks normally extend cash credit of Rs.10,000 to Rs.30,000 to SHGs along with RF subsidy of Rs.10,000 provided by Government. But the quantum of credit extended by banks to SHGs was not adequate to meet the credit requirements of all the SHG members. Therefore Government have taken special efforts to increase the quantum of credit to SHGs and ensure credit is made available to SHGs in multiple doses. Due to the efforts taken by Government, banks in the State have started providing minimum of Rs.50,000 as first linkage and minimum of Rs.1 lakh and Rs.1.5 lakh as second and third linkages respectively.

From the inception of Mahalir Thittam, SHGs have been assisted with the cumulative credit linkage of Rs.1,765.24. crores only upto March 2006. But during the last four years alone, credit linkage to SHGs has touched Rs.6,364.37 crores due to the positive interventions made by the Government and the whole hearted co-operation received from the Banks in the State. During 2010-11, the focus of Mahalir Thittam would be on increasing credit linkages to SHGs, particularly repeat loans and a credit target of Rs.3,000 crores has been fixed for the year 2010-11.
YearAchievement (Rs. in Crores)Cumulative (Rs. in Crores)
Up to 2001 120.30  120.30 
2001-02 97.91  218.21  
2002-03 184.65 402.86 
2003-04 271.32 674.18 
2004-05 490.62 1164.80 
2005-06 600.42 1765.24 
2006-07 593.45 2358.69 
2007-08 800.70 3163.39 
2008-09 2174.57 5337.96 
2009-10 2791.65 8129.61
2010-11(Upto 31.12.10) 2457.65 10587.26
Total 10,587.26   

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