Repco Bank to disburse Rs 100cr to SHGs by 2010

The Repatriates Co-operative Finance and Development Bank Ltd (Repco Bank) has disbursed Rs 18.04 crore as micro credit to self-help groups (SHGs) to date, and is looking at disbursing Rs 100 crore, which would benefit 10,000 groups by 2009-10, said M Balasubramanian, managing director, Repo Bank, at a press conference here.

He also announced the launch of a 'mobile' branch to aid self-help groups (SHGs) in Nilgiris district. The computerised van will facilitate the SHGs in opening savings accounts, repaying loans and availing of small loans.

"This is the first time that a bank has introduced a mobile branch, and I request other banks to follow the initiative. With a total disbursement of Rs 18.04 crore till date, the bank has aided 1,536 SHGs and 35,130 families and beneficiaries. I am glad to note that the bank's loan recovery is 99.59 per cent," L K Tripathy, secretary to the government of Tamil Nadu, said.

Repco Bank's interest rates on loans for SHGs are 11 per cent for amounts below Rs 25,000, 12 per cent for Rs 25,000 to Rs 2 lakh, and 12.5 per cent for more than Rs 2 lakh. Out of the total amount disbursed to the SHGs, around Rs 15 crore has been utilised to service the SHGs in Nilgiris alone.

The Tamil Nadu Fisheries Development Corporation has expressed interest in launching a mobile branch for fisherfolk in Chennai.

"We are in talks with the government. Once we get the approval, we will launch a similar initiative for the fishing community in coastal areas of Chennai. Initially, we will start with one van, but depending on the demand, we may launch one more," M Balasubramanian, managing director, Repco Bank, stated.