Pondy govt arranges bank loan for SHG members

Considering the hardship of members of self-help groups in the Union Territory caused by the lockdown to prevent the spread of COVID 19, the territorial administration has announced that loans would be available to the members at a four per cent rate of interest.

Chief Minister V Narayanasamy said in a press release that each of the 37,000 members of 2,804 SHGs in Puducherry region and 10,875 members of 764 SHGs in Karaikal region would be extended Rs 10,000. He said this would entail disbursal of Rs 17 crore as loan in Puducherry and Rs 10.78 crore in Karaikal region.

Of the 7 per cent rate of interest levied by banks, the government would bear four per cent of the interest liability and the beneficiaries would be charged four per cent as interest. The Chief Minister said repayment of the loan would commence only after six months and the amount should be returned in 30 months.