ITANAGAR- Arunachal Pradesh Chief Minister Pema Khandu at a landmark event today virtually disbursed a total loan amount of Rs 82,747,000 to 789 Self-Help Groups (SHGs) under the Deendayal Antyodaya Yojana National Rural Livelihoods Mission (DAY NRLM) provided by three banks namely State Bank of India (SBI), Arunachal Pradesh Rural Bank (APRB) and Arunachal Pradesh State Cooperative Apex Bank (APSCAB).
While the APRB granted the highest loan amount – Rs 49,046,000 – to SHG 504, SBI loaned Rs 22,601,000 to SHG 174 and APSCAB distributed Rs 11,100,000 as a loan to SHG 111.
The DAY NRLM is implemented by the Arunachal State Rural Livelihood Mission (ArSRLM) of the state’s rural development department, facilitating a subsidized loan amount of Rs 1 lakh to each eligible SHG.
The event is part of the national campaign “Azadi ka Amrut Mahotsav” in accordance with the Aatma Nirbhar Bharat mission to commemorate the 75th anniversary of India’s independence in 2022.
ArSRLM is currently implementing DAY NRLM in 22 districts and has integrated 33,516 rural households. Dedicated mission management units at state, district group and bloc levels provide ongoing support to SHGs to strengthen their institutions, financial inclusion, promotion of livelihoods and basket expansion. existing livelihoods of SHG members.
Commending the ArSRLM, especially its block-level coordinators, Khandu said that supporting savings, savings and microfinance to SHGs under DAY NRLM was instrumental in initiating transformational change at the household level in rural areas.
âWe strive to meet the formidable challenge of financial inclusion in rural areas where our citizens do not have the desired level of access to financial services. ArSRLM advances the state government’s vision to deepen financial inclusion by providing access to affordable and appropriate financial services that would help improve GDP and reduce income inequalities, âhe said .
Stating that it is the state government’s vision to transform the state’s rural economy, Khandu said that an appropriate roadmap must be developed to move the process forward. He said he would soon brainstorm with the relevant minister, coordinators and partner banks to expand financial inclusion in rural areas in addition to increasing the loan amount.
âIt’s a matter of pride that today we have approximately 3,796 SHGs, mostly women, across the state. Our goal should be to keep each of them by all means at our disposal. We also need to integrate all these SHGs into the SHG Bank Linkage Program, âhe observed.
Khandu added that the role of government is not limited to providing loans. He said that at the end of the day, each SHG would have to repay the principal amount plus interest to the bank.
âIt’s an economic model. To enable self-help groups to profitably use the loan amount, we need to provide them with market links. This should be seriously taken into account by departments like Agriculture and related sectors and agencies like the Arunachal Pradesh Marketing Board, âhe said.
According to records, the state government has so far released DAY NRLM grants through ArSRLM in the form of a revolving fund at SHG 2,901 in the amount of Rs. 435.15 lakhs and community investment fund at height of Rs.1285.16 lakhs to 280 federations of primary level of SHG. These funds are resources in perpetuity for the SHGs and their federations and are provided by the State Mission for Rural Livelihoods to strengthen the institutional and financial management capacity of the SHGs and their higher order federations.
Bankers, in particular State Bank of India, Arunachal Pradesh Rural Bank and Arunachal Pradesh State Apex Cooperative Bank, have been at the forefront of providing credit support to SHGs under DAY NRLM, where the reimbursement rate is 100% to date.
Representatives from various self-help groups from across the state joined the virtual meeting and presented their respective experiences and suggestions.
Also in attendance were Deputy Chief Minister Chowna Mein and Minister of Rural Development Bamang Felix, as well as representatives of SBI, APRB and APSCAB.