Loans worth Rs 74 lakh distributed to SHGs

Aurangabad:

The number of Self Help Groups (SHGs) is increasing in Aurangabad city. As many as 2,062 women SHGs have been registered with the Aurangabad Municipal Corporation (AMC) so far. A working capital of Rs 74 lakh has been distributed to 1500 SHGs through the government.

Women from ordinary families are coming together to form SHGs. Working capital is being made available by the banks at a low interest rate in collaboration with the State and Central government for these groups. Therefore, many SHGs in rural areas have created a large network by doing business on a small scale initially. The network of SHGs is also rising in the city.

Under the Central Government's National Rural Livelihoods Mission, such groups are being given Rs 10,000 as working capital. Many women have set up small businesses enabling them to financially support their families. This year, the target was to provide working capital to 100 SHGs. However, the AMC has exceeded the target by providing working capital to 1500 SHGs.

28 SHGs set up large businesses

A working capital of Rs 40,000 is provided to SHGs under the Pradhan Mantri Micro Food Processing Industries Scheme for setting up large scale industries. This loan is provided at an interest rate of six percent. Also, 28 SHGs have set up large scale businesses with the benefit of increased loans from banks.