SHG vertical

General Purpose Loan

• As the name indicates, it’s a general purpose loan which can be used for any income generating activity.

ELIGIBILITY

• SHG women groups should have a minimum of 10 members and a maximum of 20 members and is a homogeneous group with common interest and objectives. The group meetings are regular and all books of accounts are maintained and updated regularly.

Quantum of loan

• The quantum of loan is need based and is linked to the repaying capacity based on the house hold cash flow. The maximum loan amount is also linked to the loan cycle. The first linkage limit is a maximum of Rs.3lakhs subject to cash flow of the group and the savings of the group with a minimum of four times the group savings. The maximum loan for groups will be Rs.10,00,000/- .

Loan tenure

• Depending on the repayment capacity, the maximum tenure will be 36 months. The loan is repayable in monthly instalments

Interest rate

• For loans upto Rs.300000/- - 24%
• For loans above Rs.300000/- - 26%
• Interest is not compounded and on reducing balance.