18. Self Help Group (SHG) Bank Linkage Programme

Eligibility

1. Members should be preferably between 10 to 20.
2. Members should be preferably have a homogenous background and interest.
3. The group should have an active existence of at least 6 months.
4. Group should successfully undertaken savings and credit operations from its own resources.
5. The group should function in a democratic manner and participation to be given to all members in decision-making.
6. The interest of Voluntary Agencies (VAs) / NGOs in the group must be evident.
7. The Bank should be convinced of the genuineness of the group formation and objectives.
8. The group should devise a code of conduct viz-a-viz a) periodicity and the amount to be saved by any member b) purpose for which loan can be given c) rate of interest to be paid on savings / charged on advances.

Purpose

There is no list of ‘eligible purpose'. The purpose for which the group will lend to the members should be left to the common wisdom of the group.

Amount of Loan

The loan amount is 1:1 to 1:4 based on the savings accumulated by the group. The Branch Manager can sanction / recommend more.

Rate of interest

Interest rates ranges from 1.50% to 2.50% above Base Rate for various limits.

Security

No primary / collateral

Repayment

Repayment period based on the activities undertaken by members.