Andhra Pradesh State Government association-Stree Nidhi Credit Cooperation Federation Ltd will be disbursing Rs 1,694 crore loans to the members of Self Help Groups (SHGs) in Andhra Pradesh in the current financial year.
Stree Nidhi, set up by the State Government in association with Mandal Samakhyas to provide microfinance to SHGs in October 2011, had disbursed Rs 660 crore loans in the previous financial year.
These loans were provided to 4.60 lakh members in 1.17 lakh SHGs in rural areas in 22 districts in the Andhra Pradesh.
About 83 per cent of the total outstanding loans of Rs 577 crore were extended only to income generating activities.
The recovery rate of the disbursed loan was 98 per cent.
Popularly dubbed as a ‘microfinance bank' set up to bridge the credit gap in the wake of microfinance crisis in October 2010 in the State, Stree Nidhi recorded low cost of funds at 3.62 per cent with a net interest margin (NIM) of 2.42 per cent.
It earned a net profit of Rs 1.44 crore and 18.75 crore for 2011-12 and 2012-13 respectively.
Stree Nidhi does not charge any processing fee, documentation charges, penalty for delayed payment, administrative charges from its members.
Stree Nidhi also launched three deposit schemes with a standard interest of one per cent above rate offered by the State Bank of India and collected deposits worth 21.75 crore during the last financial year, according to a press release.