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Dimapur, Oct. 20 (EMN): With an objective to ensure effective bank linkage for self help groups (SHG), Nagaland State Rural Livelihoods Mission (NSRLM) and the HDFC Bank Ltd. signed a Memorandum of Understanding (MoU) on October 20.
A press release from NSRLM informed that the MoU was signed by Bina Kanta Bora, regional business head of HDFC Bank, and Imtimenla, NSRLM mission director. Major benefits for the SHG, according to NSRLM, would be extension of credit at a concessional interest rate of 7% per annum up to 3 lakh.
It stated that sanction as well as renewal of loan should be cleared within 30 days and enable extend financing on continuous basis. It added that the bank would not block balances in SB accounts, while it would also disburse entire loan amount sanctioned. Under the agreement, online loan applications and use of IBA common application form (loan and account opening) would be accepted. Extend banking services through ICT interventions/ BC model would also be implemented and added that the bank would establish monitoring system through meetings with MMU and VLO.
It mentioned that HDFC and NSRLM would meet quarterly to review achievements. The MoU was signed for a period of three years.
HDFC Bank Ltd. is a private bank and was awarded the best performed amongst the private bank for the year 2021-22 by the Ministry of Rural Development (MoRD) during the central level coordination committee (CLCC) meeting at New Delhi on October 13, 2022.
It stated that 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 was to empower SHG 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.
Other officials present at the function were Zieba Hiemme, additional managing director; M Rollan Lotha, chief operating officer (programmes); Rajuselie Lhousa, SPM-FI; and Dr. S Kithan, SPM-Farm, from NSRLM and Nirmal Barman, cluster head of SLI from HDFC.