General Purpose Loan for Self-Help Groups
Quick loans at affordable rates, no collaterals.
Self-Help Groups have proved to be a catalyst in supporting women in rural and semi-urban areas and encouraging them to be contributing members of their families and communities at large. Our General Purpose Loan scheme for SHG members is one of our most impactful loan products.
Product Information
General Purpose Loan
As the name indicates, this is a general purpose loan which can be used for any income-generating activity.
Eligibility
As the name indicates, this is a general purpose loan which can be uSHG women groups approved by our CMRCs/NGOs are eligible for this loan product. The group should have a minimum of 10 members and a maximum of 20 members and must be a homogeneous group with common interests and objectives. The group must hold regular meetings and ensure that all books of accounts are maintained and updated regularly.sed for any income-generating activity.
Quantum of Loan
The quantum of loan is need-based and linked to the repaying capacity based on the household’s cash flow. The maximum loan amount is also linked to the loan cycle. The first linkage limit is a maximum of INR 3 lakhs, subject to the cash flow of the group and a minimum of four times the group savings. The maximum loan for CMRC-promoted groups is INR 12,50,000/-, and for groups promoted by established NGOs, it is INR 10,00,000/-.
Loan Tenure
Depending on the repayment capacity, the maximum tenure will be 36 months. The loan is repayable in monthly instalments.
Interest Rate
Variable. Fixed in accordance with RBI Guidelines.