Good response to coop micro credit

“The 7076 special camps conducted all over the state between January 22 and February 12 resulted in 4,49,787 loan applications being issued” she disclosed. “After verification 1,79, 329 beneficiaries were given Rs 89.63 crore” Jayashree said. 

“The loans are for the economically weaker sections (EWS) all over the state, with special emphasis being on those in the flood affected districts”, she added. Other than staff needed to man the 80 cooperative bank branches in Chennai, others were pressed into service. The beneficiaries those who managed  small businesses for daily earnings. One staffer from the bank accompanied by another from the department would verify the business premises and take a photograph which would become part of bank records. 

Interest-free loans up to Rs 5000 were issued following Chief Minister Jayalalithaa announcing in the state assembly recently that Rs.100 crore was earmarked to help save EWS from the clutches of usurious money-lenders. Taking a cue from them, bank staff visited beneficiaries’ locations to give them application forms and also open bank accounts if needed. “In this connection, 1.47 lakh new bank accounts were opened” Jayashree added. Once verification was over, money would be transferred to the accounts directly and repayment is collected in 25 weeks at Rs 200 a week. 

What has surprised many is that micro credit loan repayment is as high as 95% among borrowers. The same trend is expected for  these loans also as experience has proved that the poor who get such loans are regular in repayment.