21. SHG Credit Card SHG Gold Card

Eligibility: All matured SHGs who have

1. developed proper group dynamics, viz., conduct of meetings, feelings of belongingness, regularity of internal lending, bookkeeping, transparency and democracy in election of office bearers, etc.,
2. reached third level of credit linkage and enjoying a credit limit of Rs.50000/-,
3. repayment in the earlier accounts must be regular, and
4. at least 2 of the group members should be literates to operate the account.

Preference to be given to the groups pursuing economic activities.

Purpose

1. To provide hassle-free loan to SHGs for internal lending for consumption as well as economic activity.
2. To enable SHGs and its members to take up micro enterprises / economic activity.

Amount of Loan: Maximum credit limit permissible to SHG will be:

1. 4 times the corpus of the SHG which include its savings , interest earned on internal lending and revolving fund, if any.
2. Proposal for economic activity requiring higher quantum of finance, may be considered based on the viability of the proposal.

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

Security: Hypothecation of the assets created out of the Bank loan.

Repayment: The SHG credit Card / Gold Card will be valid for 3 years subject to satisfactory operation of the account and annual review.

Other distinguishing features

SHG Credit Card:

1. Credit limit: Minimum Rs.50,000/-
2. Nature of credit facility: The credit facility is in the nature of cash credit.
3. The SHG can draw the eligible limit and credit the surplus as per their requirement within the drawing powers.
4. At the end of every year from the date of issuing of card, the limit should be reviewed and on such review branch may continue / enhance / reduce the limit depending upon satisfactory conduct of the account and the corpus available.
5. When the facility is discontinued, the loan amount will be crystallized and usual steps will be taken for recovery.
6. No cheque book will be issued. Drawals to be effected by withdrawal slips. Any number of drawals and credits within the limit are permissible.
7. Rate of Interest: As applicable to SHG loans.

SHG Gold Card:

1. SHG Gold Card will be issued only for starting / carrying on economic / income generating activities.
2. Credit limit: Minimum Rs.2,00,000/-.
3. Nature of credit facility: Will be sanctioned as a Term Loan facility with repayment schedules as per economic activity financed.
4. Rate of Interest: As applicable to SHG loans.

Consumption credit component should be available in both cards.