Self Help Groups

ObjectiveThe Bank Proposes to increase the Volume of Business by diversifying the Loaning portfolio through the branches. In this connection, introduction of schematic loaning program under SHG is proposed for implementation.
Criteria for selection of the groups.1.SHGs shall be confined to a specific locality with homogeneous income generating activities.
2. The group should have been in active existence for at least a period   of six (6) months.
3. It shall be ensured that the age group of the members shall be between 18 to 60 years only.
4. SHG formed separately by men and women shall have total number of members between 10 – 20 only.
5. One person shall be member in one group only. Membership in more than one group is not permitted.
6. The group should elect one President and one Secretary, who should act as group leaders and also they should have own house in that locality
7. The group should have been in active existence for at least a period of Six(6) months and the Savings Bank Account should be opened and operated for minimum of 6 months for availing the Loan, basing on which the eligibility of the Loan amount is fixed
8. The groups should have successfully undertaken savings and credit operations from its resources
9.The group shall have regular monthly meetings, duly recording the meeting proceedings in the minutes book and also maintain proper Books of Accounts of the Group.
10. The Group shall have internal lending prior to sanction of loan atleast for a period of not less than six months.
11.The group shall have Bank Account and all transactions shall be made through the account only.
12. The Group members should not be defaulted to any of the Banks.
13.Marks awarded on the Critical Rating Index (CRI) method.
Seniority of the SHG is to be protected in case of groups migrated from one Bank to another.
ROIThe Rates of Interest to Borrower is 7.00% *p.a.
* The interest rates are subject to change based on revision by NABARD from time to time.
* Penal interest on the over dues will be charged @ 2% over and above the interest rate at which refinance was disbursed, as in the case of schematic Lending/investment credit

Estimation of credit requirement of SHGs.

1st Dose1st Dose – 4 times of the corpus or Rs. 1,00,000/- whichever is higher.
2nd Dose2nd Dose – 10 times of the corpus or Rs. 3,00,000/- whichever is higher, shall be processed at Branch Level.
3rd & subsequent dosesFinancing as per Micro credit plan.
NABARD had vide circular Ref. No. NB. MCID/153/SHG-1(Policy) 2013-14, dt:27.5.13 suggested, simpler norms to be carried out by the financing banks at two stages/levels.
At the time of first credit linkage of SHGs and
For mature SHGs where higher quantum of credit is requested(i.e., credit in excess of four times of the group corpus could be considered).
The norms indicated in Annexure-I & II of the NABARD circular cited above are illustrative in nature. The financing bank may either use or develop suitable norms with necessary amendments for use by the financing units.
Repayment PeriodEntire loan amount shall be repaid on Monthly Basis in 12/24/36 monthly installments as agreed by the SHG, at the time of entering into an Agreement.