Tamil Nadu - Cuddalore   

Bank extends Rs. 53.50 lakh loan to tsunami-hit fishermen

By Our Special Correspondent

CUDDALORE, FEB. 10. The State Bank of India, under the newly launched Rajiv Gandhi rehabilitation package, has extended financial assistance to the tsunami-affected fishermen at Chittiraipettai near here.

The bank's Cuddalore Old Town branch gave away Rs. 53.50 lakhs to fishermen at a function held in the village on Wednesday.

Meenakshi Sundharam, Chief Manager, SBI, Cuddalore OT, told The Hindu that the bank embarked on total economic rehabilitation of the village. It took the initiative to work out certain modules to help out the fishermen, and accordingly firmed up certain proposals.

After the Centre had announced the new scheme, the bank decided to merge its relief proposals with the scheme. It encouraged the fishermen to form "seven men self-help groups" and provided each group with a loan of Rs 1.85 lakhs for the purchase of fibre-reinforced plastic catamarans, fishing nets and motor engine at concessional interest rate of 7 per cent.

The boats were hypothecated to the lending bank, and it was agreed upon that each group should repay the loan collectively over the period of seven years. For prompt repayment, they would be given an incentive in the form of 2 per cent interest subsidy.

Mr. Meenakshi Sundharam said the 35 per cent subsidy (on loan as promised under the new package) would be later obtained from the government and credited to the loan accounts of the fishermen.

Besides this, the bank had also lent under group or joint loans 25 applications seeking assistance ranging from Rs. 60,000-80,000 for repairing the damaged FRP catamarans, and another Rs. 40,000 for purchase of fishing nets; Rs. 1 lakh each (with 4 per cent interest) to six women SHGs for taking up economic activity of their choice; and Rs. 25,000 each to five beneficiaries for setting up petty shops.

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