SELF HELP GROUP

Self Help Group - NRLM (National Rural Livelihood Mission)

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.
• Unique code allotted for SHG in NRLM database should be available.

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 7 % to 11.15% 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

WC: Monthly repayment subject to annual renewal

Term Loan: 24 to 36 instalments - monthly/ quarterly for first dose

36 to 48 instalments for second dose,

48 to 60 instalments for third dose and

60 to 84 instalments from fourth dose onwards

Holiday period

Nil

Security

Irrespective of quantum

Nil

Credit guarantee coverage

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

#CGFMU fee will be borne by the SHG group.