In a major relief for Self Help Groups (SHGs) in Odisha, the state government has announced that it will refund the interest collected on loans taken by these groups. The announcement was made by Chief Minister Mohan Majhi through a post on his official X handle.
According to the announcement, SHGs that have taken loans of up to ₹10 lakh will receive a full refund of the interest paid. This initiative will be implemented in the financial year 2024-25, reaffirming the government’s commitment to strengthening grassroots communities.
CM Majhi stated that the government would forgo ₹300 crore in interest payments, benefiting over three lakh SHGs across the state. This move aims to ease financial burdens on SHGs, enabling them to contribute more effectively to local economies and sustainable community development.
The decision is a significant step towards enhancing the financial independence of SHGs, which play a crucial role in rural development. By providing this financial relief, the government hopes to encourage the growth of SHG-led businesses, fostering economic progress and community well-being.
Complaint by SHGs in Dhenkanal
In a related development, SHGs in Dhenkanal district recently raised concerns over loan discrepancies. In December, several women from three SHGs in Gangijodi village, under Tumusingha Police Station, filed a police complaint after receiving a loan notice for ₹9 lakh from their bank, despite having closed their accounts seven years ago.
The affected SHGs were formed in 2015, with members opening accounts at the local Bank of Baroda branch. These accounts were reportedly closed in 2017. However, the women alleged that loans were fraudulently issued against their accounts in 2019. Recently, the bank sent notices stating that a total loan of ₹9 lakh (₹3 lakh per account) had been taken.
This incident has raised serious concerns about banking transparency and loan disbursement processes, prompting affected SHGs to seek legal action.