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Self Help Group Loan

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A SHG is a community-based group with 5 to 10 members.It acts as the mutually agreed contribution to the common fund and is used to provide loans to the members.

Tenure is upto 1 year

Tenure for this loan is limited to 1 year

Pre-Payment Penalty 2%

It has Pre-Payment Penalty is 2%.

ROI 26%

It has ROI of 26%.

Aspects

  • Simple and easy loan processing for quick financial support.
  • Every group member is encouraged to follow the principle of “Saving First – Credit Later”.
  • Loan facility available from Rs. 10,000 up to Rs. 50,000.
  • Maximum repayment tenure available is up to 1 year.
  • Pre-payment of loan attracts a penalty charge of 2%.

ROI & Handling Charges

  • Rate of Interest is 26%.
  • Handling Charges : Half Yearly & Yearly.

Eligibility

  • Small businesspersons are eligible to apply for the loan facility.
  • Applicants between 18 and 55 years of age are eligible for the scheme.
  • Only one member from a single family is allowed in each group.

Documents Required & Shared Holdings

  • New customers and guarantors are required to open a Savings or Current Account with the bank.
  • Duly filled application form along with:
    • Income Proof of Applicant & Guarantors
    • Residential Proof of Applicant & Guarantors
    • PAN Card of Applicant & Guarantors
    • KYC Documents of Applicant & Guarantors
  • Two acceptable guarantors are mandatory for loan approval.
  • Regular Membership fees is Rs. 10 & Share amount @ 10% of loan amount. amount.