Andhra Pradesh Grameena Vikas Bank – Loans to SHG Federations

By | March 29, 2011

Purpose: This loan provides financial assistance in the form of a term loan to SHG Federations for lending to SHGs.

 

Eligibility: The federation must be a primary federation at Village / Cluster Level and whose membership does not exceed 30 SHGs. It should have a clear track record of operations funded by itself for at least past one year. It should have a good credit rating as per the specifications of the bank. The other specifications to verify the credibility of the federation like the organization set up, functioning, operations, etc. will also be looked into while granting the loan.

 

Quantum of Loan: Maximum permissible finance to SHGs Federation based on the norms of direct finance to SHGs.

Margin: There is no margin for this kind of loan unlike any other personal loan.

 

Repayment: The repayment can be done through Monthly, Quarterly; Half Yearly installments may be set depending on the project. The total repayment should be done within a maximum period of 5 years.

 

Security: Charge on fixed assets, (if any) and Assignment of book debts serves as the security for the loan.

 

Other Documents Required: Documents related to disbursal of loans to SHGs will have to be produced along with other documents demanded for.

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About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

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