Banks should shed reluctance in lending to urban poor as recovery is 98%, says M.Venkaiah Naidu

In his inaugural address at the National Conference on ‘Deendayal Antyodaya Yojana-National Urban Livelihoods Mission’ organized in the national capital,  Naidu stressed the need for enhanced credit flow to the Self-Help Groups and for self- employment through individual and group enterprises under the Mission.

Venkaiah Naidu asserted that loan repayment by Self-Help Groups is 98% and hence, were most bankable and eligible for lending.

He expressed concern over inadequate credit linkages to such groups in the States in the Northern and Eastern regions of the country with the Southern states accounting for 62% of total credit linkage of Rs.3,173 groups advanced during the last two years under DAY-NULM.

He highlighted the importance of supporting Self-Help Groups that are in the forefront of addressing poverty by taking up various economically productive activities through internal lending among the members.

The Minister said that with several initiatives being taken to promote domestic and Foreign Direct Investment in various sectors, there is a vast scope for employment generation leading to increased demand for skilled manpower.

Naidu said that the Government is committed to eliminating poverty by ‘skilling the unskilled, funding the unfunded and reaching the unreached’.

The Minister stressed on the need for convergence in implementation of skill development programmes and scaling them up in a convergence mode.

He said, "25% of people still living Below Poverty Line is clearly unacceptable when the country is aspiring for a lead role in the comity of nations. Concerted efforts need to be mounted to eliminate poverty. Due emphasis needs to be given on training to catch the fish instead of giving fish all the time. While banks should scale up financing, loans need to be repaid."