Objective: To provide hassle free credit to the poorest amongst the poor through group approach from the banking system in a flexible, hassle free and cost effective manner, for productive as well as consumption requirements.

Nature of Facility: Composite Loan including term loan/ revolving cash credit, for inter lending to group members (subject to the successful grading of the group).

Eligibility: The group becomes eligible for bank credit linkage after 6 – 8 months of regular savings by the group.

Quantum of loan: Maximum upto 4 times the total Savings of the group.

Rate of interest

i. Direct Loans up to Rs.2.00 lacs to SHGs – 10.25%

ii. Direct loans above Rs.2.00 lacs to SHGs – 11.50%

iii. Indirect Loans to NGO/ MCOs/ -11.50%