SELF HELP GROUP

Self Help Group - Direct Linkage

Scheme

Purpose

Loan for Income Generation Activities, Social Needs like Housing, Education etc., and for Debt swapping.

Eligibility

Target Audience

SHG who are in active existence for at least 6 months as per the books of account of SHG and not from the date of opening of SB account

Other Criteria

• Date of resolution on formation of SHG will be considered as date of formation of SHG.
• SHGs should be practicing panchasutras i.e., Regular meetings, Regular savings, regular inter-loaning, and timely repayment and up-to date books of accounts

Financials

Quantum

#Maximum per member limit will not exceed Rs.1.00 Lakhs

# If the group undertakes any economic activity as per Micro Credit plan, there is no restriction in the per member limit of Rs.1.00 Lakhs.

Margin

Nil

Rate of interest

Ranges from 10.00 % to 10.65% based on quantum.

Processing charges

Per member limit up to Rs.50,000/- Nil

Per member above Rs.50,000 /- - 0.25% of per member limit.

Tenure

Repayment period

Monthly repayment subject to annual renewal

Holiday period

Nil

Security

Irrespective of quantum

Nil

Credit guarantee coverage

Loan amount above Rs.10.00Lakhs and up to Rs.20.00 lakhs will be covered under CGFMU.

#CGFMU fee will be borne by the SHG group.