Officials during the signing of memorandum of understanding to ensure effective bank linkage for SHGs on October 20.
Dimapur, October 20 (MExN): The Nagaland State Rural Livelihoods Mission (NSRLM) and the HDFC Bank Ltd inked a memorandum of understanding (MoU) to ensure effective bank linkage for SHGs on October 20. The MoU signed by Bina Kanta Bora, Regional Business Head HDFC Bank and Imtimenla, Mission Director, representing HDFC Bank and NSRLM respectively, stated a press release received here.
Other officials present in the function were Zieba Hiemme Addl. MD, M Rollan Lotha, chief operating officer (programs), Rajuselie Lhousa, SPM-FI and Dr S Kithan, SPM-Farm, from NSRLM and Nirmal Barman, Cluster Head-SLI, from HDFC.
Major benefits for the SHGs will be extension of credit at a concessional interest rate of 7% per annum up to three lakh. Sanction as well as renewal of loan shall be cleared within 30 days and enable extend financing on continuous basis. The Bank will not block balances in SB Accounts while Disburse entire loan amount sanctioned. Online loan applications and use of IBA Common Application Form (Loan & Account opening) will be accepted. Extend banking services through ICT interventions/BC model will be implemented. The Bank will establish monitoring system through meetings with MMUs and VLOs. The HDFC and Mission shall meet quarterly to review achievements. The MoU is for a period of three years.
The release stated that HDFC Bank Ltd. is a private bank. The Bank was awarded the best performed amongst the Private Bank during FY 2021-22 by the Ministry of Rural Development (MoRD) during the Central Level Coordination Committee (CLCC) meeting at New Delhi on October 13.
The department of Sustainable Livelihood Initiative (SLI) under HDFC is a holistic approach that aims to deliver financial support to that of the population who lack access to formal banking services. Since 2006 the Bank has started making loan availability convenient and stress free, the objective of the Bank is to empower SHGs and JLGs with financial independence and eliminate their dependence on money lenders. The Bank has enabled women to avail credit and utilise it for professions such as livestock rearing, tailoring, artificial jewellery designing, setting up grocery shop, etc. It has also augmented cash flow to framers by extending collateral free loans.
