The Primary Agricultural Cooperative Banks are paying special attention to meet the credit needs of weaker sections. NABARD has stipulated to extend not less than 30% of short term lending by cooperatives to small farmers who own or cultivate less than 5 acres. Further, it is targeted to extend 14% of the quantum of loan issued under short term loans and 30% under medium term loans to the members belonging to Scheduled Caste/ Scheduled Tribe.

(ii) Micro Credit Scheme

The District Central Cooperative Banks and Urban Cooperative Banks are implementing this unique scheme to benefit marginalized small and petty merchants and street vendors engaged in the business of selling flowers, vegetables, fruits and running petty shops. They are the most vulnerable group for exploitation by usurious money lenders. Their credit requirements are very small but critical. This scheme which was launched by this Government has been amplified and streamlined over the years. Under the scheme the loan amount upto Rs.5000/- is being provided without any security.

It is proposed to improve the scheme further by issuing credit card to such beneficiaries and organize them as a self help group.

(iii) Assistance to Self Help Groups

Lending through self help groups is considered extremely effective to ensure financial inclusion. It is also beneficial to the banks in terms of better repayment and lower transaction cost. Under various schemes and Government sponsored programmes, lending is extended through self help groups.

(iv) Women Entrepreneur Loan Scheme

The District Central Cooperative Banks and Urban Cooperative Banks are providing loans upto Rs.10 lakhs repayable in 60 monthly installments at 12% interest to women entrepreneurs to start small industries and to take up service activities.

(v) Working Women Loan Scheme

Under this scheme, the District Central Cooperative Banks and Urban Cooperative Banks are issuing loans upto Rs.1.00 lakh at an interest rate of 12% per annum to working women drawing monthly income. This loan is repayable in 36 instalments.

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