Banks told to extend loans to SHGs at lower interest rates

Hyderabad: Finance Minister T Harish Rao has asked all the bankers to extend loans to women Self Help Groups (SHGs) at uniform lower interest rates and ensure the subsidy given on loans by the government reached the beneficiaries without fail.

Participating in State Level Bankers' Committee (SLBC), under Annual Credit Plan of 2019-20 for the quarter ended September, 2019 here, the Minister requested the banks to reduce the interest rate to 13 per cent from the current 14 per cent and provide loans to the identified groups which pay loan instalments timely.

He also asked all the officials of the departments to furnish details of the money deposited in the name of department heads before January 10. The financial institutions were also instructed to return unpaid monetary benefit to the farmers under Rythu Bandhu to the government within 15 days.

Harish also enquired the bank officials about utilisation of funds earmarked for loan waiver scheme.

Om Prakash Mishra, Chief General Manager,SBI & President of SLBC, Telangana and B Ramesh Babu, Dy Managing Director, State Bank of India, were also present in the meeting.