MICRO FINANCE
1. SELF HELP GROUP (SHG) BANK LINKAGE PROGRAMME
ELIGIBILITY
a. Members
should be preferably between 10 to 20.
b.
Members should be preferably have a homogenous background and interest.
c.
The group should have an active existence of at least 6 months.
d.
Group should successfully undertaken savings & credit operations from its
own resources.
e.
The group should function in a democratic manner and participation to be given
to all members in decision-making.
f.
The interest of Voluntary Agencies (VAs) / NGOs in the group must be evident.
g. The Bank should be convinced of the genuineness of the group formation and objectives.
h. 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% below BPLR for various limits.
SECURITY
No primary / collateral
REPAYMENT
Repayment period based on the activities undertaken by members.
2. SCHEME FOR FINANCING MATURED SHGs FOR FARM PRODUCTION AND INVESTMENT ACTIVITIES
ELIGIBILITY
SHGs which are three years old or have availed a minimum of two cycles of bank loan and repaid successfully (Matured SHGs).
PURPOSE
Term Loan and Cash Credit limit sanctioned for farm production and investment activities covering agriculture sector and allied activities.
Illustrative list of Activities that could be considered for financing to matured SHGs.
I. Agriculture:
1. Crop under normal banking arrangements or under Contract Farming.
2. Fruit crops.
3. Ornamental plants.
4. Aromatic plants.
5. Vegetable crops.
6. Medicinal plants.
7. Sericulture.
8. Farm Forestry.
9. Agro Forestry.
II. Other Activities allied to Agriculture:
1. Animal Husbandry - Goatery, Piggery, Sheep Rearing, etc.
2. Fisheries including tank / pond on lease.
3. Apiculture
4. Mushroom cultivation
5. Seed production
6. Agro food processing units - making Papad, Pickles Jams etc.
7. Custom hiring activities in Agriculture
8. Agriculture inputs trading
AMOUNT OF LOAN
The matured SHGs may prepare a credit plan for each of its members and aggregate of that is to be submitted by the SHG to the bank.
RATE OF INTEREST
Interest rates ranges from 1.50% to 2.50% below BPLR for various limits.
SECURITY
NIL.
REPAYMENT
Repayment period based on the activities undertaken by members, maximum 5 years.
3. SHG CREDIT CARD SHG GOLD CARD
ELIGIBILITY
All matured SHGs who have
(i) 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.,
(ii) reached third level of credit linkage and enjoying a credit limit of Rs.50000/-,
(iii) repayment in the earlier accounts must be regular, and
(iv)
at least 2 of the group members should be literates to operate the
account.
PURPOSE
(a)
To provide hassle-free loan to SHGs for internal lending for consumption
as well as economic activity.
AMOUNT OF LOAN
Maximum credit limit permissible to SHG will be:
(i)
4 times the corpus of the SHG which include its savings , interest earned
on internal lending and revolving fund, if any.
RATE OF INTEREST
Interest rates ranges from 1.50% to 2.50% below BPLR 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:
(i) Credit limit: Minimum Rs.50,000/-
(ii) Nature of credit facility: The credit facility is in the nature of cash credit.
(iii) The SHG can draw the eligible limit and credit the surplus as per their requirement within the drawing powers.
(iv) 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.
(v) When the facility is discontinued, the loan amount will be crystallized and usual steps will be taken for recovery.
(vi) No cheque book will be issued. Drawals to be effected by withdrawal slips. Any number of drawals and credits within the limit are permissible.
(vii) Rate of Interest: As applicable to SHG loans.
SHG Gold Card:
SHG Gold Card will be issued only for starting / carrying on economic / income generating activities.
(i) Credit limit: Minimum Rs.2,00,000/-.
(ii) Nature of credit facility: Will be sanctioned as a Term Loan facility with repayment schedules as per economic activity financed.
(iii)
Rate of Interest: As applicable to SHG loans.
4. KUDUMBASHREE MICRO HOUSING PROJECT FOR THE POOR (BHAVANSHREE) SBT RURAL HOUSING LOAN SCHEME
ELIGIBILITY
1. Beneficiaries should be members of SHGs / NHGs with at least 6 months experience in micro credit activities.
2. Loan will be provided only to those families who possess a minimum of 1.50 cents of land with clear title which can be taken as collateral security.
PURPOSE
The scheme is aimed at providing micro finance to the people living BPL for construction of houses.
To finance Self Help Groups for on lending to members for housing in rural areas for purchase or construction of a house including the housing needs for activities under taken by them. (Dairy shed, tailoring shed / shop, grocery stores etc.)
For the renovation or repair of an existing house / shed
AMOUNT OF LOAN
10 times the savings of the corpus of SHG / NHG.
This ceiling would include the loan outstanding in the limits already sanctioned
to SHGs/NHGs.
RATE OF INTEREST
Interest rates ranges from 2.25% to 2.50% below BPLR for various periods.
SECURITY
Mortgage of land on which the house is constructed.
REPAYMENT
The repayment of instalment to be spread over a period of 15 years and the instalment amount to be fixed at monthly/quarterly/half yearly / yearly as is convenient.
5. SBT RURAL HOUSING LOAN SCHEME (BHAVANSHREE) - SCHEME ON SANITATION
ELIGIBILITY
Those are eligible to finance under "SBT Rural Housing Loan Scheme (Bhavanshree).
PURPOSE
Extension of existing pf existing house to construct twin-structure of toilet and bathing room.
AMOUNT OF LOAN
Maximum Rs.7750/-
RATE OF INTEREST
Interest rates ranges from 2.25% to 2.50% below BPLR for various periods.
SECURITY
Mortgage of land on which twin-structure of toilet and bathing room is constructed.
REPAYMENT
The repayment of instalment to be spread over a period of 15 years and the instalment amount to be fixed at monthly/quarterly/half yearly / yearly as is convenient.
6. FINANCING OF JOINT LIABILITY GROUPS (JLGs)OF TENANT FARMERS, SMALL FARMERS AND MARGINAL FARMERS
ELIGIBILITY
1. Members should be of similar socio economic status and background carrying out farming activities and who agree to function as a joint liability group.
3. The group must be organized by the likeminded farmers and not imposed by the bank or others.
4. The
members should be residing in the same village / area and should know and trust
each other well enough to take up joint liability for group / individual loans.
5.
The members should be engaged in agricultural activity for a continuous period
of not less than one year within the area of operations of the bank branch.
6.
The group member should not be a defaulter to any other formal financial
institution.
5.
JLG should not be formed with members of the same family and more than one
person from the same family should not be included in the JLG.
7. There is a need for a very active member of the group to ensure leadership role and ensure the activities of the JLG. The selection of a good / able / active leader for the JLG is an essential need which will ultimately benefit all the JLG members. However, care should be taken to ensure that benami loans are not cornered by the group leader.
PURPOSE
1.
To augment flow of
credit to tenant farmers cultivating land either as oral lessees or
sharecroppers and small farmers who do not have proper title of their land
holding through formation and financing of JLGs.
2.
To extend collateral free loans to
target clients through JLG mechanism.
AMOUNT OF LOAN
Maximum amount of loan may be restricted to Rs.50000/- per individual.
RATE OF INTEREST
Interest rates ranges from 1.50% to 2.50% below BPLR for various limits.
SECURITY
No collaterals may be insisted upon against the loans to JLGs except mutual guarantee offered by the JLG members.
REPAYMENT
Repayment period based on the activities undertaken by members.
Schemes like Annapoorna, Rabit plus, Harithabhomi and Kamadhenu are available under JLG.
ANNAPOORNA
ELIGIBILITY
Activity clusters / JLGs preferably with 4 to 10 members predominantly farmers who make their livelihood through paddy cultivation.
PURPOSE
1. To meet the expenses of paddy cultivation in the lease land (Tenant cultivation) undertaken by the activity clusters on Joint Liability Group (JLGs) basis.
2. To meet the expenses of the paddy cultivation by the activity cluster member in their own land or in lease land under the direction of activity cluster / JLG.
AMOUNT OF LOAN
1.
The
quantum of loan to each cluster / JLG will depend on the acreage taken for
cultivation.
2. Loan amount will be the maximum of Rs.2 lakh per acre per cluster with a cap of per head borrowing to Rs.50000/-.
RATE OF INTEREST
Interest rates ranges from 1.50% to 2.50% below BPLR for various limits.
SECURITY
1.
Primary – Hypothecation of standing and future crops.
2. Collateral – The per head liability of the individual borrowers is considered as Rs.50000/-, as such no collateral security by way of mortgage of land is envisaged.
REPAYMENT
With in six months or on sale of produce whichever is earlier.
RABBIT PLUS
ELIGIBILITY
Self Help Groups / Joint Liability Groups consisting of 5 farmers each who are desirous of taking rabbit farming.
PURPOSE
1.
To meet the cost of outer shed, hutches and cages for bunnies.
2. To meet the cost of breeder rabbit, feed cost, insurance and veterinary aid.
AMOUNT OF LOAN
Loan is to be sanctioned as Agriculture Term Loan with a limit of Rs.25670/-. The proposed cluster includes minimum of 5 members and loan per group will be 1,28,350/-
RATE OF INTEREST
Interest rates ranges from 1.50% to 2.50% below BPLR for various limits.
SECURITY
1.
Primary – Hypothecation of assets created out of bank finance.
2. Collateral – Personal guarantee of group members.
REPAYMENT
The loan amount will be repaid with in 5 years in 16 quarterly instalments plus accrued interest. Gestation period 12 months.
KAMADHENU
ELIGIBILITY
Self help groups (Cluster units) / Joint liability (JLGs) with 7 to 10 members.
PURPOSE
1. Construction of cattle shed with strong flooring, purchase of two milch cows, cost of feed and utensils and veterinary expenses along with the setting up of a gobar gas plant.
2. Cost of heifer (Purchase of Calves aged 9 to 10 months) for bringing them up as cows, construction of cattle shed, miscellaneous initial expenses including insurance, feeding and husbandry cost till the animal conceives (from 11 to 20 month) and its calving (from 21st to 30th month).
3. Purchase of one ‘malabari’ she-goat (with 2 to 3 kids), construction of barn, cultivation of fodder including Azolla, rearing expenses for 5 years and veterinary care and incidental expenses. (ii) Cost of 5 numbers of rabbits, construction of cage and for feeding and maintenance cost for 5 years.
AMOUNT OF LOAN
1. A term loan of Rs.50000/- can be sanctioned for meeting expenses related to purchase of milch animal, construction of shed etc. and for gobar gas plant.
2. A term loan of Rs.20000/- can be sanctioned for meeting the expenses related to purchase of heifer, construction of shed, feed, insurance etc.
3. A term loan of Rs.10000/- can be sanctioned for meeting expenses related to purchase of she-goat, construction of barn, cultivation of fodder etc
RATE OF INTEREST
Interest rates ranges from 1.50% to 2.50% below BPLR for various limits.
SECURITY
1.
Primary- Hypothecation of assets
created out of Bank finance.
REPAYMENT
1.
Milch Cow
- 6 to 7 years including moratorium period, instalments to be paid monthly.
2.
Heifer
- 5 years - Moratorium 20 months, instalments to be paid monthly.