The chief minister of Andhra Pradesh, Mr N Kiran Kumar Reddy has requested banks that they should increase the credit flow in the state to aid the self help groups (SHGs) in preventing from the huge interests being charged by the micro finance institutions (MFIs).

According to him, the government is wanting to convert the loans given by microfinance institutions (MFIs) worth Rs 7500 crore be transferred to banks.

"I want bankers to go beyond the targets to achieve this objective,&" he said at the meeting.

Apart from this, the government has also decided to give away bulk loans to the Mandal Mahila Samakhyas (MMS) which are SHG federations. "The need for bulk finance to MMS is felt more than ever in the present context of MFI crisis. Currently, there is no way a SHG gets another loan during the currency of existing loans, and loan is not available to them for a period of 3-5 years driving poor to access high cost loans from MFIs/ money lenders,&" a report said.