SHGs to get bank loans at 7 pc:Ramesh
All the self help groups (SHGs) in the country would be able to get credit at seven per cent, at par with crop loans, union minister of state for environment and forest Jairam Ramesh said on Tuesday.
"The union government has taken a decision that the SHGs will get bank loans at the same rate at which crop loans are given. The crop loans carry an interest rate of seven percent.
There is demand to reduce it further to five percent and I would certainly support that," Ramesh said.
At present, banks extend loans to SHGs under bank linkage programme at 12 percent.
Ramesh was speaking at the fourth international summit on microfinance which began on Tuesday.