Andhra Pradesh is soon going to get a 'microfinance bank' coming to the benefit of women of self help groups (SHGs). The bank would be charging interest near to only 3% for micro loans.

At the international microfinance summit in Hyderabad, Chief Minister of the state, Mr Kiran Kumar Reddy spoke about the microfinance bank.

He said that equity worth Rs 150 crore from both the center as well as state governments as well as 2/3 banks would be needed to start the bank. He added that, "we had already requested the Centre to contribute Rs 100 crore."

"We understand that private finance is required. But they will have to reduce the interest rates," he said.

"We cannot let the poor suffer. You reduce interest rates, talk to banks and give the poor proper time to repay the existing loans," Mr Reddy said.