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
SHG 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.
Quantum of Loan
The quantum of loan is need-based and is linked to the repaying capacity based on the household based on their 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 cash flow of the group and the savings of the group with a minimum of four times the group savings. The maximum loan for CMRC-promoted groups will be INR 12,50,000/- and for groups promoted by established NGOs the maximum loan amount will be INR 10,00,000/- .
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