BANKING AFFAIRS

Detailed explanation-1: -The group will be eligible for a maximum loan of Rs. 2 lakh per member or Rs. 10 Lakh per group, whichever is lower. SHGs may be sanctioned Savings Linked Loans (varying from a saving to loan ratio of 1:1 to 1:4) after due assessment or grading by banks.

Detailed explanation-2: -The SHG members’ inter-se will get a term loan from the group.” repayable in monthly/ quarterly/half yearly instalments in 3-5 years coinciding with cash flow of the activity undertaken by the group.

Detailed explanation-3: -SHGs in existence for a minimum period of 3/6 months and follow the norms of good SHGs known as ‘Panchasutras’, viz., regular meetings, regular savings, regular internal lending, regular recoveries and maintenance of proper books of accounts, and which have not received any RF earlier will be eligible for such support.

Detailed explanation-4: -In the remaining districts of the country referred to as Category-II districts, women SHGs under DAY-NRLM availing loans upto Rs. 3.00 lakh from Banks, Interest Subvention is given to the extent of the difference between Bank’s lending rate and 7% subject to the maximum ceiling of 5.50% per annum.