“Madurai requires focus on school education to increase the retention rates,” said Mr. Jawahar.

The speciality of this scheme is that no margin or collateral is required. The past record of the SHG is what counts while borrowing money for the loan. Hence, there is also an incentive for SHGs to improve their past record. The SHGs can avail themselves of a maximum loan of six times of their accumulated savings at any time of the year according to their requirements.

The loan will be in addition to the regular SHG loans, according to the Lead District Manager KN. Subramanian.

There is also a provision to decide on the time of the repayment, which can be made over a period of 12 to 24 months depending upon the cash flow of the group.