Indian Bank plans to give Rs.20,000 Crore Loans to SHGs Across India, Know how to get Loan
Indian Bank, a major public sector bank in India, has announced that it plans to give out ₹20,000 crore in loans to Self Help Groups (SHGs) across the country in the current financial year (2024-25). This step is part of the bank’s mission to support women-led businesses and promote financial inclusion at the grassroots level.
Mega Credit Outreach Event in Bhubaneswar
To move ahead with this goal, Indian Bank recently organized a Mega SHG Credit Outreach Programme in Bhubaneswar, Odisha. The event was part of a bigger nationwide campaign started by the Department of Financial Services, Government of India.
The programme was attended by important officials, including:
- M Nagaraju, Secretary, Department of Financial Services
- Binod Kumar, Managing Director and CEO, Indian Bank
- Mahesh Kumar Bajaj, Executive Director, Indian Bank
Over ₹500 Crore Sanctioned to SHGs in One Day
During the event, a total of 9,961 Self Help Groups were given loan sanction letters worth ₹509.91 crore. This financial support is meant to help women entrepreneurs in rural and semi-urban areas start or grow their small businesses. These SHGs often include women working in fields like handicrafts, farming, tailoring, dairy, and small-scale trade.
Supporting the National Mission: Empowering 1 Crore Women
This initiative is part of a larger plan by the Government of India to empower one crore SHG women by giving them better access to credit. Indian Bank is playing an active role in achieving this mission by reaching out to women-led SHGs across India.
What is SHG?
Self Help Groups (SHGs) are small groups of poor people. The members of an SHG face similar problems. They help each other, to solve their problems. SHGs promote small savings among their members. The savings are kept with the bank. This is the common fund in the name of the SHG. The SHG gives small loans to its members from its common fund
SHG is an informal group and registration under any Societies Act, State cooperative Act or a partnership firm is not mandatory vide Circular RPCD.No. Plan BC.13/PL -09.22/90- 91 dated July 24th, 1991.
Why SHGs require Loans from Banks?
Self Help Groups (SHGs) require loans and funding from banks for the following reasons:
- To Support Income-Generating Activities:
SHG members use bank loans to start or expand small businesses like tailoring, handicrafts, dairy, farming, etc., helping them become self-reliant. - To Provide Affordable Credit:
Bank loans offer SHGs access to credit at much lower interest rates than informal sources like moneylenders. - To Empower Women and Rural Communities:
Most SHGs consist of women in rural areas. Bank funding supports their empowerment, financial inclusion, and socio-economic development. - To Build Credit History:
Regular repayment of bank loans helps SHGs build a strong credit record, enabling access to larger loans in the future. - To Leverage Government Support:
Many SHGs get interest subsidies and credit guarantees under schemes like NRLM (National Rural Livelihoods Mission), making bank loans more attractive and feasible. - To Improve Financial Discipline:
Managing bank loans instills financial discipline, savings habits, and better bookkeeping among SHG members.
How SHGs can get Loans from Indian Bank?
Self Help Groups (SHGs) in India can take loans from Indian Bank easily via visiting the bank branch. You can visit any branch of Indian Bank across India and apply for Loan. The Loan is approved by Bank in just a few days. Alternatively, you can also apply for Loan online in Indian Bank via this link – https://apps.indianbank.in/lmm/frm_lead_gen_int.aspx
