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

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

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

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

MARGIN

• Up to 10 Lakhs - NIL; thereafter scheme /activity wise

INTEREST RATE

As prescribed by the Bank. Interest will be applied on monthly compounding basis