SHG/JLG Loans (Self-Help Group )

SHG LOANS (SELF HELP GROUP) and JLG LOANS (JOINT LIABILITY GROUP)

Our society provides loans to SHG/JLG formed by the members of our society. The members of the group shall be from a homogeneous group from a nearby geographical area working in a democratic way where each member is free to express his / her opinion. It shall have a byelaw and be regular in holding its meetings with adequate attendance. The groups shall maintain proper books of accounts like minutes, savings, accounts, and attendance registers. Manager shall attend the meetings at irregular intervals, inspect the books of accounts, and confirm that the group is functioning as per byelaws for a minimum period of 6 months and fall under reasonable grading / rating as per norms. Since A class membership cannot be granted in the name of SHG, we may process the loan by issuing shares in the name of either its President or Secretary or both. Based on the recommendation of the branch, the loans may be sanctioned by ECB under AOTL.

Our society extends finance to SHGs without the intermediation of any voluntary agencies (VAs) or Non Governmental Organisations (NGOs) (Direct Linkage). However, they shall be registered with any of these agencies. In case, the finance is extended to the promoters of SHG like VAs or NGOs or the Self Help Promoting Institutions (SHPI) that has promoted the SHGs where merit, standing, reputation, and involvement of such voluntary associations are important (Indirect Linkage). It shall be ensured that as per byelaws of the agency, they are empowered to promote SHG and avail loan facilities on behalf of SHG. Necessary resolutions of the executive body of the agency shall be obtained in this regard.

•  Maximum amount for individuals : Rs.50,000/-

•  Interest rate : 15 %

•  Repayment period : 36 months(Higher period will be considered in deserving cases)

•  Repayment : Equated monthly instalments

•  Security : Inter se Agreement by all members.

: Assets if any acquired out of the loan

•  Collateral security : Nil

•  Available at all branches

•  No Prepayment penalties