AP Grameena Bank Relaxes Loan Norms for Self-Help Groups

A bank in India called the Andhra Pradesh Grameena Bank helps groups of people, mostly women, save money and take small loans together.

These groups are called self-help groups, or SHGs.

Usually, a group needs at least 10 members to get another loan.

But sometimes members move away or pass away, and the group gets smaller.

In the past, smaller groups could not get new loans even if they paid everything back on time.

Now the bank has made a new rule to help them.

If a group still has at least eight members and has always repaid on time, it can get another loan.

The group must promise to bring its membership back up to 10 within six months.

A minister named Kondapalli Srinivas said this is good news and asked other banks to make similar rules.

This helps women keep their small businesses and earn money for their families.