Credit-linked revolving fund subsidy for women SHGs

The Tamil Nadu Corporation for Development of Women Limited (TNCDWL) will extend `credit-linked revolving fund subsidy' to the women self-help groups functioning in the municipal and town panchayat limits in the district from this fiscal.

Till now, the corporation was offering the subsidy only to the women SHGs from village panchayats, under various schemes like Swarnajayanthi Grama Swarozgar Yojana.

M. Madasamy, Project Officer, TNCDWL, said the Government would offer the subsidy at the rate of Rs.10,000 to each group, with the remaining Rs.30,000 to come in the form of credit from financial institutions.

He said the financial assistance could be utilised for internal lending and micro-credit.

Since Rs.10,000 was considered as subsidy grant, banks would charge interest only on the credit component.

Mr. Madasamy said a total of 1,453 women SHGs functioning in the 19 town panchayats and 1,831 groups in the three municipalities had been short-listed for the scheme.

Of this, the subsidy would be disbursed only to those groups that had passed the first round of grading as per the criteria set by the Government.

Mr. Madasamy said that internal lending, audit of accounts, thrift, refund of credit and maintenance of records, pertaining to each group would be scrutinised for grading.

"Those groups which score 60 per cent would be selected as beneficiaries," he said.

The successful groups could apply to the banks for the release of the subsidy to them through TNCDWL.

Source: The Hindu