Date:01/01/2009 URL: http://www.thehindu.com/2009/01/01/stories/2009010159580800.htm

Tamil Nadu

SHG receives credit from Panchayat Level Federation

Special Correspondent

Innovative initiative: Collector M. Jayaraman handing over micro-credit assistance to a panchayat level self-help group member in Nagapattinam district on Wedesday.

NAGAPATTINAM: For the first time in Tamil Nadu, women self-help groups in Kariapatnam panchayat in the district have received micro-credit for economic activities from Panchayat Level Federation (PLF) that was registered as a Micro-Finance Institution (MFI) recently along with four other PLFs in the district under Societies Registration Act.

Nagapattinam district was the first to form PLFs in five panchayats. After their empowerment as MFIs, they were provided with loans ranging between Rs. 10 lakh and Rs. 40 lakh by banks. The Chief Minister M. Karunanidhi honoured the District Collector M. Jayaraman last month for pioneering the initiative.

On Wednesday, eleven self-help groups received soft loans of Rs. 1 lakh each from the PLF in Kariapatnam village for enhancing their economic standards through activities such as trading in coconuts, starting grocery shops, and establishing Xerox printing units. The PLF was provided with Rs. 20 lakh funding by the Primary Agricultural Cooperative Bank.

The forwarding of micro-credit to the SHGs through MFI reflects progression in the State Government’s dream to infuse economic vibrancy in villages, the Collector said, adding that steps have been taken to register more such PLFs as MFIs in the district.