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Self Help Group

Purpose

The loans may be used by members for meeting social needs, high cost debt swapping, construction or repair of house, construction of toilets and taking up sustainable livelihoods by the individual members within the SHGs or to finance any viable common activity started by the SHGs

Eligibility

  • Maximum 20 members allowed in the SHGs.
  • SHGs should be in active existence at least since the last 6 months as per the books of account of SHGs and not from the date of opening of S/B account.
  • SHGs should be practicing ‘Panchasutras’ i.e. Regular meetings; Regular savings; Regular inter-loaning; Timely repayment; and Up-to-date books of accounts;
  • Qualified as per grading norms fixed by NABARD. As and when the federations of the SHGs come to existence, the grading exercise may be done by the Federations to support the banks.
  • The existing defunct SHGs are also eligible for credit if they are revived and continue to be active for a minimum period of 3 months

Quantum of finance

Minimum Rs.1.00 lakhs based on corpus of SHG.

Security & Margin

No collateral and no margin would be charged up to ₹10.00 lakh limit to the SHGs.

Repayment

Maximum 84 months based on the cash flow in monthly/ quarterly installments.

Rate of interest

Interest Rates as decided by the Bank from time to time.

Interest Subvention

Interest Subvention will be provided to eligible women SHGs based on guidelines issued by MoRD/State government from time to time.