APCOB offer finance to SHGs to meet Social needs like education, marriage, high-cost debt swapping, construction or repair of houses, construction of toilets etc., and Income generation activities
In order to facilitate use of loans for augmenting livelihoods of SHG members, at least 50% of loans above Rs. 1.00 lakh, 75% of loans above Rs. 4.00 lakh and at least 85% of loans above Rs. 6.00 lakh should be used primarily for income generating
productive purposes.
Repayment schedule for term loans may be as follows:
First dose of loan may be repaid in 24-36 months in monthly/quarterly instalments.
Second dose of loan may be repaid in 36-48 months in monthly/quarterly instalments.
Third dose of loan may be repaid in 48-60 months based on the cash flow in monthly/quarterly instalments.
From fourth dose onwards loans may be repaid between 60-84 months based on the cash flow in monthly/quarterly instalments.
Subject to maximum of Rs. 20.00 lakh, limits will be released in dosages as detailed below:
DP for the first year: 6 times of the existing corpus or minimum of Rs. 1.50 lakh, whichever is higher.
DP for second year: 8 times of the existing corpus at the time of renew/enhancement or minimum of Rs. 3.00 lakhs, whichever is higher.
DP for the third year: Minimum of Rs. 6.00 lakh based on the MCP prepared by SHG and appraised by the federations/support agency and the previous credit history.
DP for fourth year onwards: Above Rs. 6.00 lakh, based on MCP prepared by SHG and appraised by the federations/support agency and the previous credit history.
First Dose: 6 times of the existing corpus or minimum of Rs. 1.50 lakh, whichever is higher.
Second Dose: 8 times of the existing corpus at the time of review/enhancement or minimum of Rs. 3.00 lakh, whichever is higher.
Third Dose: Minimum of Rs. 6.00 lakh based on the MCP prepared by SHG and appraised by the federations/support agency and the previous credit history.
Fourth Dose: Above Rs. 6.00 lakh based on the MCP prepared by SHG and appraised by the federations/ support agency and the previous credit history.
(Corpus is inclusive of revolving funds, if any, received by the SHG, its own savings, interest earned by the SHG from on-lending to its members, income from other sources, and funds from other sources in case of promotion by other institutions/
NGOs).
| Interst Rates % | |||
|---|---|---|---|
|
S. No |
Quantum of Loan (Rs. in Lakh) |
ROI (Monthly Compounding) |
Subvention for Banks |
|
i. |
Up to ₹ 3 Lakh |
7.00 |
4.50 |
|
ii. |
Above ₹3 Lakh & Up to ₹5 Lakh |
8.00 |
5.00 |
|
iii. |
Above ₹ 5 Lakh & Up to ₹20 Lakh |
9.00 |
– |
The Interest subvention scheme is limited to women Self Help Groups under DAY-NRLM in rural areas only.
Penal Interest @ 2% p.a. will be charged on entire outstanding in case of delayed payments till the defaulted amounts are repaid.
An SHG account will be considered as prompt payee if it satisfies the following criteria for considering next dosage:
Outstanding balance shall not have remained in excess of the limit/drawing power continuously for more than 30 days.
There shall be regular credits and debits in the accounts. In any case there shall be at least one credit during a month.
There should not be over dues in repayment of interest/EMIs.
Street Vendors / Hawkers, Tiffin Centres, Vegetable Vendors, Beauty Parlours / Saloons, Repairing Centres (Electrical / Electronics), Carpenters, Small Kiosks, Mobile Sellers, Tailoring units, Photo Studios, Welding Units, Xerox / Stationery shop, any other self-employment activities. The list is indicative only, and does not exclude any other prevailing or emerging activities as per assessment of Branch Manager.
The applicant should have account with the Bank.
He should be KYC norms compliant and should be undertaking the business activity within 5 kms radius of the branch.
Only one member in a family is eligible for the finance.
Minimum CIBIL – 650
No CIBIL score required for loan amount less than Rs. 50,000/- however the applicant should not be an existing defaulter.
