Patna: The Bihar government would bear the interest rate above 7 per cent on loans taken by Self Help Groups (SHGs), Chief Minister Nitish Kumar said today.
The SHGs paying loan on time would be given incentive by providing loan at a lower interest rate of 4 per cent, Kumar said addressing a review meeting of "Jeevika" (Bihar state rural livelihood mission) here.
Banks are at present providing loan to SHGs at 12 per cent interest rate.
Principal Secretary Rural Development department Amrit Lal Meena while briefing about the meeting said that the Chief Minister gave the direction to meet the target of increasing number of SHGs in the state to 10 lakh by 2016-17 and connect 1.25 rural families with it.
Presently 1.15 lakh SHGs have been formed and as many families linked with the scheme.
The Chief Minister took a close look at the plan to achieve the target and discussed the issue with the officials.
Kumar said through SHGs women could be empowered.
He said women SHGs could be provided special training so that they could avail opportunities in the field of poultry, goat rearing, fisheries and dairy, Meena added.
Rural Development Minister Nitish Mishra, Chief Secretary Ashok Kumar Sinha and Development Commissioner Alok Kumar Sinha participated in the meeting.