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NT Bureau
Chennai, Feb 25:

        Reaching out to Self Help Groups, the Repatriates Cooperative Finance and Development Bank Ltd known as REPCO Bank has promoted the Repco Foundation for Micro Credit (RFMC).

        Under the micro credit and economic development programme, the RFMC launched the mobile branch for fisherwomen Self Help Groups recently. Tamilnadu Chief Secretary L K Tripathy formally launched the facility at a function held in the city. The new entity is a non-profit organisation set up for extending supporting services to SHGs financed by the bank solely with a view to increasing the income level and eventually improving the standard of life of the target group.

        According to Repco Bank, managing director M Balasubramanian, the need for floating the bank's own subsidiary was mainly to set up an unique model to reach out to the target group for extending credit facility. Moreover, it was aimed at creating awareness and to bring out the talents among the target group.

        And the new model has been broughtforth to undertake monitoring and capacity building activities of the beneficiaries for improving the skill and consequently their credit absorption capacity.

        There is a distinct advantage in the Repco Bank's own subsidiary playing the role of an NGO as effective control could be exercised over the NGO besides ensuring fair practices for the betterment of target group.

        However, the objectives and role of Repco Foundation is to conduct baseline survey to assess the level of poverty, social issues and identify households, to arrange preliminary meeting of members and assisting them to form SHGs, Imparting training and assisting them to open bank accounts and to encourage savings among group members.

        In this context, it is pertinent to point out that the pilot project was implemented at Gudalur in Nilgiris District wherein 30 groups were first linked with the bank and sanctioned small credit limits for Rs 3 lakh based on their savings only to clear their private debts carrying interest at exorbitant rate. It is a matter of pride for the bank that it had completely weaned them away from the usurious money-lenders who had disappeared from the scene.

        During the second and third phase of implementation, the bank has sanctioned higher limits to the SHGs to take up economic activities with a view to improving their living conditions and to have a better standard of living.

        As a follow up, the group members who have already shown perceptible improvement in their economic conditions have approached the bank for financial assisstance for housing/ renovation of their existing house.

        The bank which started with 30 groups and a credit deployment of Rs 3 lakh has now expanded its credit activities to more than 2000 groups as of December 2006 with credit limit exceeding Rs 1500 lakh within a period of three years achieving almost 100 per cent recovery.

        And the progress sheet of the bank revealed that there was a sea change in the socio-economic fabric of the group members wherein the improvement in education level, better housing facilities, business development and intensive agricultural practices.

        It also brought improvement in confidence level of members, enhanced mutual cosultations, improved healthcare services, gender equation among the group members.

        Going the extra mile is what the bank is longing for. Their outlook agenda includes credit outlay of Rs 100 crore besides covering 20,000 groups and has envisaged to bring 16 districts under its cover.