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Loan Repayment Rate by SHGs to Banks Stands at 97.71 Per Cent, Says Centre

The Self-Help Groups distributes loans to specific SHG members, which they use for various purposes.

Ayushi Sikarwar
SHGs
Women Self-Help Group (File Image)

The Union Minister of State for Rural Development, Sadhvi Niranjan Jyoti, stated in a written response to a question in the Rajya Sabha on Friday that the loans are being approved by the banks in the name of Self-Help Groups (SHGs). The SHG distributes loans to specific SHG members, which is used by them for various purposes.

According to Jyoti, the total amount of loans still owed to Self Help Groups (SHGs) as of November 30, 2022 is Rs 1,68,920.11 crores. Further, as of November 30 this year, SHGs had repaid 97.71 per cent of their loans to banks.

She said that in order to comprehend the overall effects of the Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM), the ministry has commissioned a number of impact evaluation studies. The International Initiative for Impact Evaluation (3ie) and the World Bank collaborated to carry out an impact evaluation study of DAY-NRLM in 2019–20, the statement added.

The survey was conducted in 9 states, including Bihar, West Bengal, Odisha, Jharkhand, Madhya Pradesh, Chhattisgarh, Maharashtra, Rajasthan, and Uttar Pradesh, with about 27,000 respondents and 5,000 SHGs. According to the evaluation, an additional 2.5 years of exposure to the Mission resulted in:

The survey was conducted in 9 states, including Bihar, West Bengal, Odisha, Jharkhand, Madhya Pradesh, Chhattisgarh, Maharashtra, Rajasthan, and Uttar Pradesh, with about 27,000 respondents and 5,000 SHGs. According to the evaluation, an additional 2.5 years of exposure to the Mission resulted in:

1. Income growth of 19% above the basic amount.

2. 20% decrease in the percentage of unofficial loans

3. Savings growing by 28%

4. Enhanced labour force participation: In treated regions, a larger percentage of women (4%) report having a secondary occupation.

5. Better access to other programmes - Treatment households used significantly more social programmes (6.5% more than the base value of 2.8 programmes)

According to information on the Deendayal Antyodaya Yojana-National Rural Livelihoods Mission's (DAY-NRLM) Bank Linkage webpage as of November 30, 2022, the state-by-state breakdown of loans outstanding with SHGs is as follows:

(Amount Rs. in Crores)

1. ANDAMAN & NICOBAR ISLANDS 0.83
2. ANDHRA PRADESH 55897.82
3. ARUNACHAL PRADESH 12.46
4. ASSAM 2393.04
5. BIHAR 12275.30
6. CHATTISGARH 1249.59
7. GOA 49.22
8. GUJARAT 448.18
9. HARYANA 288.31
10. HIMACHAL PRADESH 173.55
11. JAMMU & KASHMIR 414.19
12. JHARKHAND 2502.91
13. KARNATAKA 19851.27
14. KERALA 7062.52
15. LADAKH 0.81.
16. LAKSHADWEEP 1.31
17. MADHYA PRADESH 1958.14
18. MAHARASHTRA 5408.98
19. MANIPUR 24.22
20. MEGHALAYA 81.43
21. MIZORAM 48.64
22. NAGALAND 69.99
23. ODISHA 7067.64
24. PUDUCHERRY 159.01
25. PUNJAB 84.07
26. RAJASTHAN 1147.76
27. SIKKIM 26.99
28. TAMIL NADU 13025.00
29. TELANGANA 20224.75
30. THE DADRA AND NAGAR HAVELI AND DAMAN AND DIU 0.87
31. TRIPURA 255.97
32. UTTARAKHAND 106.11
33. UTTAR PRADESH 632.16
34. WEST BENGAL 15977.07

Total 168920.11

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