Purpose – The loan offers financial assistance to all schemes with Income Generating Activities
Revolving Fund – Revolving fund For groups revolving fund equal to group corpus subject to minimum of Rs. 5000 and maximum of Rs.10000/- will be released by DRDA/AP. Banks credit also be linked to group corpus and can be to 4 times of group corpus.
Subsidy – Individuals: 30% of the project cost subject to maximum of Rs.7500/-, For SC/ST it will be 50% – maximum of Rs.10000/-;
For Groups-50% of the project cost subject to percapita subsidy of Rs.10000/- or Rs.1.25 lakhs whichever is less. For irrigation projects there is no monitory ceiling. And the subsidy is back ended.
Security – For individual loans up to Rs.50000/- and group loans up to Rs.5.00 lakhs only primary security to be obtained if the project exceeds Rs.5.00 lakhs additional security should be obtained.
Repayment – 5 to 7 years in monthly /Quarterly/half yearly/yearly depending on the type of project; Subsidy will have lock in period of 3 to 4 years; if the repayment is made prematurely, subsidy available on pro-rata basis.