Thiruvananthapuram, May 1 (KNN) The Self Help Group (SHGs) members of Kudumbashree in Kerala were advised not to depend on indiscriminate borrowings as it leads to a situation of debt trap.

In a meeting, the district-level review committee of banking advised the members of Kudumbashree and other self-help groups (SHGs) to maintain financial discipline.

Inaugurating the meeting, Assistant General Manager, Reserve Bank of India, S. Sooraj said the tendency of some members of SHGs including Kudumbashree to avail themselves of credit from multiple agencies would lead to a debt trap.

In a meeting, it was informed that banks in the district had disbursed Rs 6,203 crore for the priority sector in the first nine months of the financial year 2018-19 against the annual target of Rs 9,961 crore.

Out of the total disbursement, Rs 3,488 crore was for agriculture, Rs 1,823 crore for the MSME sector and Rs 3,498 crore for other priority sectors.

The meeting also evaluated the performance of banks under agricultural loans, service sector loans, MSME loans, PMEGP, education loans, housing loans, schemes of Employment Exchange, MUDRA, and Stand up India as well as schemes of DIC, KVIB, KVIC and RKLS.