The Hindu Business Line : Kshetra Dharmasthala to use SHG network for financial inclusion

Mangalore, Aug. 19 The Dakshina Kannada-based non-government organisation Shri Kshetra Dharmasthala Rural Development Project (SKDRDP), which has formed over 1.07 lakh self-help groups (SHGs) in nine districts of Karnataka, will use its network of SHGs for financial inclusion programme in un-banked areas.

SKDRDP will be an intermediary in the form of business correspondent for providing banking facilities in three districts of Karnataka.

Speaking at a ‘Meet the Press’ programme organised by the Dakshina Kannada Working Journalists’ Association here on Wednesday, Dr D. Veerendra Heggade, Chairman of SKDRDP, said that the organisation has entered into an agreement with State Bank of India to become its business correspondent in Dharwad, Gadag and Haveri districts.

A good model

Terming ‘business correspondent’ as a good model, he said this will provide better banking facility to the people in un-banked areas.

SKDRDP, which has more than 1.07 lakh self-help groups, operates in Dakshina Kannada, Udupi, Uttara Kannada, Kodagu, Shimoga, Chikmagalur, Dharwad, Gadag and Haveri districts of Karnataka. It has more than 11.50 lakh members in its SHGs, he said.

The SKDRDP, which started its operations in Dharwad, Gadag and Haveri districts six months ago, has enrolled more than two lakh members, he said.

The 1.07 lakh SHGs of SKDRDP have a cumulative savings of Rs 130 crore and a loan turnover of Rs 1,215 crore. The loans borrowed from the banks are lent to members at 3 per cent to 5 per cent above the bank interest rates.

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