Objective:

To enable Women SHGs to access repeat finance from Banks, till they attain sustainable livelihoods and decent living standards.

Eligibility:

NRLM compliant women SHGs registered with State Level Rural Livelihood Missions (SRLMs) (like Kudumbashree in Kerala, Mahalir Thittam in Tamil Nadu etc.) are eligible.

Type of Loan:

Either Term loan or Cash Credit

Loan Amount:

The loan amount is based on the savings accumulated by the group and activity undertaken by the group. For well established NHGs the quantum of loan may go up to the ratio of 1:4.

Rate of Interest:

Loans sanctioned in 150 selected districts @ 7% up to Rs.3 Lakhs Other districts Loans up to Rs.2 Lakhs - 1.50% above Base Rate,  Loans above Rs.2 Lakhs - 2.50% above Base Rate

Nature and Amount of Subsidy

The interest subsidy support from Govt. will be limited to Rs.3 lakhs. Subsidy to be claimed from the Govt. 150 Selected districts - Interest subvention of 3% if they repay in time, reducing the effective rate of interest to 4%. Other districts - The difference between the lending rate of the Bank and 7% will be borne by the Govt. The effective interest to the borrower will be 7%.

Repayment Period:

Maximum period of 60 months

Security and Margin:

No collateral security and margin for loans up to Rs.10 lakhs