Tamil Nadu - Madurai

Bank signs pact to help the poor

MADURAI: The Indian Overseas Bank (IOB) has signed a memorandum of understanding with a Chennai-based non-governmental organisation to provide subsidised loans to people belonging to below poverty line (BPL) families so that they could start income-generating ventures.

The MoU with Development Promotion Group (DPG) was signed here on Friday by K.V. Krishnan, Chief Regional Manager, IOB, Madurai Region, and R. Bhakther Solomon, Chief Executive Officer of the NGO.

Under this scheme, the group had identified 100 families in Chennai and loans totalling over Rs. 8 lakh were released to the families. The third release of loans was carried out on Friday and 2,750 applications from seven blocks were approved.

Of these, around 175 loans were distributed to persons from three districts around Madurai at the function. The process of sanctioning would continue. It is expected to approve 10,000 loans in three months.

These loans carry a differential rate of interest (DRI) of four per cent. With the assistance of seven other NGOs, the DPG would identify BPL families and a suitable income generation activity.

The loans would be in the range of Rs. 5,000 to Rs. 15,000 with the repayment period being 12 months. No margin is to be borne by the beneficiaries.

Provision of other services and non-credit inputs such as healthcare, education and hygiene would be ensured in the scheme area. The scheme would be implemented in Tamil Nadu and bordering areas of neighbouring States.

In his address, Mr. Krishnan requested the beneficiaries to utilise the loans in a productive manner.

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