Self Help Groups (SHGs)

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Group Finance

Self Help Groups (SHGs)

Credit support for active self-help groups with graded lending based on corpus, micro-credit planning, and repayment history.

Eligibility Criteria

SHG should be in active existence at least since the last 6 months as per the books of account of SHGs and not from the date of opening of S/B account.

SHG should be practicing Panchasutri i.e. regular meetings, regular savings, regular inter-loaning, timely repayment and up-to-date books of accounts.

The existing defunct SHGs are also eligible for credit if they are revived and continue to be active for a minimum period of 3 months.

Loan Amount

Dose	Loan Amount	Repayment Schedule
First Dose	6 times of the existing corpus or minimum of Rs 1 lakh whichever is higher	The first year/ first dose of loan will be repaid in 12-18 months in monthly/ quarterly instalments
Second Dose	8 times of the existing corpus or minimum of Rs 2 lakh, whichever is higher	The second year/ second dose of loan will be repaid in 18-24 months in monthly/ quarterly instalments
Third Dose	Minimum of Rs 3 lakhs based on the micro credit plan prepared by the SHGs and appraised by the Federations/ Support agency and the previous credit history	The third year/ third dose of loan will be repaid in 24-36 months in monthly/ quarterly instalments
Fourth Dose	Minimum of Rs 5 lakhs based on the micro credit plan prepared by the SHGs and appraised by the Federations/ Support agency and the previous credit history	The loan from fourth year/ fourth dose onwards has to be repaid between 3-6 years based on the cash flow in monthly/ quarterly instalments

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