FINANCING SELF HELP GROUPS – DIRECT LINKAGE TO SHGS

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DIRECT LINKAGE TO SHGS

DIRECT LINKAGE TO SHGS

The loans may be used by members of SHGs for meeting social needs, high-cost debt swapping, construction or repair of house, construction of toilets and taking up sustainable livelihoods or to finance any viable common activity started by the SHGs. In higher doses, emphasis will be on income generating activity.

Eligibility Criteria

  • SHGs should be in active existence for at least 6 months as per their books of accounts (and not from the date of opening of S/B account).
  • Should satisfy the Grading parameters set by NABARD.
  • SHG Should have required Corpus for availing loan.

Loan Amount

  • Minimum Loan Amount: Rs 50,000
  • Maximum Loan Amount: Rs 20,00,000

Facility

Both Term loan and Cash Credit is permitted.


Security & Margin

  • Primary- Clean/Hypothecation of assets created out of bank finances.
  • Collateral – NIL.
  • Margin: Up to 10 Lakh – Nil / Above 10 lakh – Minimum 10%
  • CGFMU cover will be applicable for Loans Above Rs 10 Lakh

Loan Documents

Loan Documents as prescribed by IBA.


Interest Rate

1 Yr. MCLR + 3.60% = 12.60% p. a (Subjected to change from time to time based on banks Guidelines)


Charges

No loan processing fee/ Documentation Charges/Inspection charges for loans up to Rs. 5 Lakhs. (Subjected to change from time to time based on banks Guidelines)


Last Updated On : Saturday, 17-05-2025

Interest Rates

8.00%* p.a. onwards

w.e.f. 15.04.2025

*T&C Apply.

 

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