Purpose – Financial assistance to SHG Federations for on lending to SHGs
Type of loan – Clean term loan
Eligibility – Primary federations at Village / Cluster Level and whose membership does not exceed 30 SHGs.
Track record: Minimum one year is required in continuous thrift and credit activity from own funds, operating profit from thrift and credit operations, commitment to democratic governance. Approval of duly audited accounts in annual general body meetings.
Registration: Duly registered under Andhra Pradesh mutually Aided Cooperative Societies Act 1995.
Rating: at least once during last six months of their constituent Self Help Groups as per Critical Rating Index and at least75% of the groups have to be rated as ‘A’ category.
Default SHGs: Care is to be exercised to avoid financing through SHG Federations to existing default groups. To obviate double financing no dues Certificate has to be insisted from the SHGs
Quantum of Loan – Maximum permissible finance to SHGs Federation based on the norms of direct finance to SHGs.
Disbursements – Through Savings Bank Account.
Margins – Nil
| a) Direct to Groups | 14% |
| b) Through MACS/VOs | 15% |
Rate of Interest –
Processing fee – Nil