| SALIENT FEATURES |
- Flagship programme of the Govt of India for poverty reduction through development of institution for the poor, particularly women and provide them with sustainable livelihood means
- Community based development of the poor; their financial inclusion and strengthening of their livelihood means through extensive use of human and financial resources
- WSHG based on mutual affinity is the building block of NRLM
- Implementation in Mission Mode
- Universal Social Mobilization
- participatory identification of poor (PIP): not based on BPL list
- Development of Community based institutions
- Strengthening of SHG's & SHG Federations
- Training; Capacity Building & Skills Development
- Community investment Fund (CIF) in addition to Revoking Fund
- Interest Subvention in place of Capital subsidy
- Universal Financial Inclusion
- Hand holding support through Federations
- During initial 2 years amount of loan will be corpus linked, whereas after 2 years of existence it will be Micro Credit Plan linked
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| PURPOSE |
- Amount of Loan can be utilized by the Group members for their personal/ social needs/ debt swapping/ house repair/ construction toilet, construction/sustainable livelihood or collective income generating activities
- While the amount of loan during the first two doses of credit may be utilized for personal/social needs or debt swapping, the later 2 doses will be utilized strictly for income generating activities
- The objectivity is financial independence of the group member through repeated doses of credit
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| ELIGIBILITY |
- Mutual affirnity based WSHG with min 5 members active for 6 month since formation
- SHG must have been in active existence for 6 month
- Mixed gender SHGs permissible incase of Physical Challenged/ Transgender
- SHG must follow panchshutras: Reguar- Meeting / Saving/Inter lending/ Repayment & Up to Date Record Keeping
- Must attain Grade I as prescribed by grading norms of NABARD
- Old & Inactive SHGs eligible provided they have been active for last 3 months
- Defaulters not to be financed under NRLM
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| LOAN AMOUNT |
- CCL:- maximum loan of ₹ 6 lakhs to each eligible SHG for a period of 3 Years with a yearly drawing power .The drawing power may be enhanced annually based on the repayment performance of the SHG. The drawing power may be calculated as follows
- 1st Dose: 6 times of the existing Corpus OR ₹ 100,000 (whichever is greater)
- 2nd Dose: 8 times of the Corpus at the time of review or enhancement OR ₹ 2 lakhs (whichever is greater)
- 3rd Dose: Minimum ₹ 6 lakhs based on the Micro Credit plan prepared by the SHG and valued by the SHG Federation/ Hand holding Agency and the previous credit history
- 4th Dose: Above ₹ 6 lakhs based on the Micro Credit plan prepared by the SHG and valued by the SHG Federation/ Hand holding Agency and the previous credit history
- TL:- Incase of Term Loan, banks are advised to sanction loan amount in doses as mentioned below
- 1st Dose: 6 times of the existing Corpus OR ₹ 100,000 (whichever is greater)
- 2nd Dose: 8 times of the Corpus at the time of review or enhancement OR ₹ 2 lakhs (whichever is greater)
- 3rd Dose: Minimum ₹ 6 lakhs based on the Micro Credit plan prepared by the SHG and valued by the SHG Federation/ Hand holding Agency and the previous credit history
- 4th Dose: Above ₹ 6 lakhs based on the Micro Credit plan prepared by the SHG and valued by the SHG Federation/ Hand holding Agency and the previous credit history
- However, per borrower indebtedness normally should NOT exceed ₹ 1 lakhs
- Resolving Fund SHG in active existence for 3 to 6 month following Panchsutras which have not received any RF in the past are eligible to received RF between 10,000-15,000 at the First Dose
- Corpus includes Total Saving + RF + Any Grants
- SB A/c mandatory prior to Credit Linkage
- Incase of irregular repayment at any stage, next dose will NOT be disbursed
- Branch will ensure that the amount borrowed in second & onwards doses is used for incoming generating activities
- 2nd Dose onwards every Cash Credit disbursed will be in the form of reducing limit
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| LOAN AMOUNT |
- Up to 10 Lakhs - NIL; thereafter scheme /activity wise
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| INTEREST RATE |
- As prescribed by the Bank. Interest will be applied on monthly compounding basis
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