Date:09/01/2009 URL: http://www.thehindu.com/2009/01/09/stories/2009010950310300.htm

Tamil Nadu

“Permanent expo of SHG products planned”

Staff Reporter

Tiruvannamalai Collector inaugurates expo

Tiruvannamalai: Collector M. Rajendran has warned “certain banks” that are levying interest on government subsidies provided along with loans to self-help groups (SHGs).

He was inaugurating ‘Sudar-2009,’ a handicraft exhibition displaying products of a SHG here on Thursday.

Mr. Rajendran also said there were allegations that some banks were forcing SHG members to take certain insurance policies they were marketing. “This should be avoided. Non-governmental organisations (NGOs) should not lend money on higher interest rates to groups associated with them. If they continue to do so, they will lose the recognition given to them,” he said. The first three banks that lend more loans to SHGs at the State and district-levels would be given cash rewards.

Expressing opinion that more range of products should have been displayed in the exhibition, Mr. Rajendran said that a permanent exhibition of SHG products in Tiruvannamalai was being planned.

Assistant General Manager of NABARD Narayanan, lead bank manager Srinivasan, project officer of ‘Mahalir Thittam’ Sivasubramaniam were present.