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Need to set up govt-owned micro finance institutions
There is a need to set up government-owned micro finance institutions across the country to fulfill the credit requirements of rural people, industry body Assocham has said.
The chamber would soon submit a proposal to the Ministry of Finance and the Prime Minister office in this regard, Assocham said. l
More than subsidies the poor need access to credit which can be well facilitated through the government-owned micro finance institutions, it said.
These financial centres would offer funds to poor people at lower interest rates compared to the existing private micro finance facilities, it said.
Currently, the privately managed micro financing firms have not been able to tap the market for credit disbursement because of high rates charged by them, Assocham said.
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