Group Loan Scheme
National Backward Classes Finance & Development Corporation
(A Govt.of India Undertaking, Ministry of Social Justice & Empowerment)
GROUP LOAN SCHEME
Objectives
Under this scheme, loan assistance is available to Self Help Groups (SHGs) to provide credit facilities for the target group through nominated Channel Partners (State Channelising Agencies/Banks).
Self-Help Groups (SHGs)
SHGs is a small economically homogenous and affinity group of people voluntarily formed to save and mutually agree to contribute to a common fund to be lent to its members as per group decision.
Eligibility
- a. Members of Backward Classes as notified by Central/State Govt. from time to time.
- b. Applicant's annual family income should be upto Rs.3.00 Lakh.
- c. In a SHG atleast 60% members must belong to Backward Classes provided other members belong to weaker sections (as per income or economic criteria prescribed by Govt.) including Scheduled Castes/Scheduled Tribes/Minorities and Person with Disabilities (PwD).
Salient Features
| 1. | Maximum loan limit per SHG | Rs.15.00 Lakh |
| 2. | Maximum loan limit per beneficiary | Rs. 1.25 Lakh |
| 3. | Maximum number of persons in one SHG | 20 |
Implementation
The scheme is to be implemented by Channel Partners and NBFC-MFI or similar Financial Institutions in rural and urban areas.
Pattern of Financing
| 1. | NBCFDC Loan | 90% |
| 2. | Channel Partner/NBFC-MFI or FIs/ | 10% |
| 3. | Beneficiary contribution |
Rate of Interest & Repayment Period
| Particular | NBCFDC to Channel Partner | Channel Partner to Benef. | Repayment Period |
|---|---|---|---|
| I. To SCAs or Banks | 3% p.a. | 6% p.a. | 3 year |
| II. To NBFC-MFI or similar Financial Institutions | 6% p.a. | 16% p.a. |
Note : Timely payment rebate on annual basis @1% to be equally appropriated between Channel Partners and Beneficiaries
