Interest subvention is reliable for SHGs

<script async src="https://pagead2.googlesyndication.com/pagead/js/adsbygoogle.js?client=ca-pub-4057852254071953"

     crossorigin="anonymous"></script>

Interest subvention is reliable for SHGs.

The state government has increased the Interest subvention benefits on SHGs loans from Rs 3 lakh to 5 lakh making it o% effective annual rate of interest to transform SHGs in small and medium enterprises.It comes under Mission Shakti Loan- state interest Subvention Scheme effective from April 1,2022.

    On Monday,Chief Minister Naveen Patnaik disbursed the interest subvention benefits for the first two quarters of 2022-23 worth Rs 125 crore to more than 2.5 lakh women self-help groups(SHG).

      Describing that women's empowerment is not a slogan but a non-negotiable code,Naveen said,"It has now become a big institution with the active participation of 70 lakh women, creating a new history in Odisha's development. Women are now playing a major role in the decision making process.They will play a significant role in transforming Odisha and ensuring overall development in the years to come. The increase in interest subvention benefit will certainly boost the credit flow to SHGs, increase the average loan size and reduce the NPA position. Over the next five years,funds amounting to Rs 50,000 crore are targeted to be disbursed to SHGs across the state,the CM said while addressing 400 SHG and federation leaders including those connected virtually from across 314 blocks and 30 districts. 

      With institutional finance, Mission Shakti SHGs have been able to own and operate women-led enterprises thereby significantly contributing to local economies.Over the last five years,around 4 lakh SHGs have been credit linked with  loans amounting to Rs 17,000 crore,official sources said.

         Naveen also virtually inaugurated the district-level federation building of Jajpur district, the first of its kind.The state-of-the-art Mission Shakti Bhawan equipped with  a sales outlet.computer training center,sewing machine training center and a training-cum-multipurpose theater will provide a greater platform to SHG members of the district.Naveen has approved the construction of district Mission Shakti Bhawan in each district at budgetary allocation of Rs 1 crore per bhawan.

      To nature entrepreneurship among women, during the Make in Odisha Conclave-2022,the CM announced a revolving fund of Rs one crore for all district-level federation,revolving  fund of Rs 50 lakh for all block level federation,office building with market complex for all gram panchayat-level federation in all 30 districts.