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| ::: Wings > TRICOR > GO's |
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| GO's |
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| Government Order Passed on Pavala Vaddi Scheme |
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GOVERNMENT OF ANDHRA PRADESH |
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ABSTRACT |
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Self Help Group Lending by Commercial, Cooperative and Regional Rural Banks -Reimbursement of interest over and above 3% - Pavala Vaddi Scheme - Orders - Issued. |
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| Panchayat Raj and Rural Development (RD-II) Department. |
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| G.O.Ms. No. 152 |
Dated: 4-5-2005 |
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| Sub: |
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Tribal Welfare Dept. - A.P. Scheduled Tribes - Cooperative Finance Corporation Ltd.(TRICOR), Hyd. Enhancement of Subsidy for Economic Support Schemes Transport Sector Schemes under NSTFDC - Orders issued. |
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| Read: |
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| G.O.Ms.No. 271, PR & RD (RD-II) Department, Dated 17-9-2004. |
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| Order: |
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| 1. |
In the reference read above, Government have allowed payment of incentive to Self Help Groups on the interest charged by banks over and above 3% per annum, subject to the maximum ceiling of provided that there is 100% repayment of the loan by. Self Help Groups. |
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| 2. |
Government have since received the policy and have decided to absorb the entire interest burden over and above 3% rate without restricting the incentive to a maximum of 6% interest differential. |
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| 3. |
Further, the revised guidelines for operationalizing the scheme are given below |
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| a. |
The scheme will be applicable to all loans extended to Self Help Groups by banks on or after 1-7-2004. |
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| b. |
Interest incentive in respect of active loans will be released to the groups once in a year based on the performance of the loan account obtaining as on March 31 of the previous financial year. However, in respect of the loan account, which is closing during the middle of year, interest incentive will be released within one month of account closure. The loan accounts that are classified as Non-Performing Assets in the books of the bank as at the close of previous financial year are ineligible. |
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| c. |
Considering that statutory auditors of bank confirm classification of performing assets by its branches.It has been decided to rely upon certified statement of eligible groups issued by the bank branch. |
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| d. |
Accordingly, the DRDAs shall obtain from the bank branches the following Lists at the close of the financial year. |
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| I. |
List of active loan accounts as at close of financial year for which the claim is being made indicating the actual interest applied. |
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| II. |
List of groups that have closed/foreclosed their accounts'during the year indicating the actual interest applied. |
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| e. |
DRDA shall determine the eligible interest incentive and issue proceedings, suo-motu, for release of incentive based on the certified statement of bank branch. This should be completed by 15th May. |
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| f. |
DRDA will release the interest incentive directly to the group$ by way of cheque and obtain utilisationcertificates as per the procedures adopted for revolving fund. |
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| g. |
DRDA will put in place appropriate MIS for SHG Bank Linkage programme and update the same at quarterly intervals to monitor the repayment performance of the Scheme. |
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| 4. |
The interest incentive scheme shall also be extended to loans provided by banks to village organisations which are federations of women Self Help Groups. |
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| 5. |
This order issues with the concurrence of Finance Department vide their U.O.No. 9422-A/110/A2.Expr.PR&RD/2005, dated: 29-5-2005. |
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| (BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH) |
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| K.RAJU |
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| Principal Secretary to Government |
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