FINANCING SELF HELP GROUPS - Agri & Rural

Loan Amount

• Minimum Loan Amount: Rs 1,50,000
• Maximum Loan Amount: Rs 20,00,000

Facility

Both Term loan and Cash Credit is permitted

• Term Loan – 24 Months to 60 Months
• Cash Credit – Yearly Sanction - subject to review/ renewal.

Security & Margin

Primary Security

• For loan Up to Rs 6 Lakhs – Nil
• For Loan Above Rs 6 lakhs - Hypothecation of assets created out of bank finances.
• Collateral Security – NIL.

Margin: Up to 10 Lakh – Nil / Above 10 lakh – Minimum 10%

Credit Guarantee: CGFMU cover will be applicable for Loans Above Rs 10 Lakh

Loan Documents

Loan Documents as prescribed by Indian Banks' Association (IBA)

Interest Rate

Concessional Rate of Interest for SHGs under DAY-NRLM. Tiered ROI – Based on Outstanding

• Outs. Upto Rs 3 Lakh – 7%
• Outs above 3 Lakh & Upto 5 Lakh – 1Yr. MCLR (8.85%)
• Outs. above 5 lakh & Upto 10 lakh - 1 Yr. MCLR (8.85%) + 1.40%
• Outs above 10 lakh – 1 Yr. MCLR (8.85%) + 1.20%

(This rate is subject to revision from time to time as per the bank’s prevailing guidelines.)

Minimum – 7%, Maximum -10.25%, Average – 9.52%. (Subjected to change from time to time based on banks Guidelines)

Other Charges

For loans up to Rs 20 lakhs – All loan related charges waived.