NRLM is a flagship programme of GOI for promoting poverty reduction through building strong institutions of the poor, particularly women and enabling them to access a range of financial & livelihood services. The scheme was launched w.e.f. April 1, 2013 by restructuring & replacing SGSY.
Formation of Women SHG
- Formation of Women SHG under NRLM consists of 10-15 persons
- Opening of Savings Bank account of SHGs
Eligibility criteria for SHG to avail loan:
- SHG should be in active existence for at least since last 6 months as per Books of Accounts of SHG
- SHG should follow ‘PANCHASUTRAS’ – Regular Meetings, Regular Savings, Regular Inter-loaning, Timely Repayment & up-to-date books of accounts.
- SHG should be qualified as per grading Norms fixed by NABARD
Loan Amount: Emphasis is laid on the multiple doses of assistance under NRLM based on corpus/quantum of Savings + Fund Mobilised
- 1st dose: 4 to 8 times of proposed corpus during the year or ₹ 1 lakh whichever is higher
- 2nd dose: 5 to 10 times of existing + proposed savings during the next 12 months or ₹ 2 lakh, whichever is higher
- 3rd dose: Minimum of ₹5 lakh based on Micro Plan Credit prepared by SHG
- 4th dose onwards: Above ₹ 5 lakh, based on the Micro credit plan preparedAbove ₹ 5 lakh, based on the Micro credit plan prepared by SHG and appraised by the Federations/Support agency and the previous creditHistory.
Purpose: Loan may be used for meeting social needs, high cost debt swapping, or to finance any viable common activity by the SHG
Margin: No margin to loan limit of ₹10 lakh
Security: No collateral security for loan up to ₹10 lakh
Rate of Interest
- Bank may lend to the women SHGs @7%
Loan type: Either Term Loan of Cash Credit or both
- 1st dose of loan will be repaid in 6-12 instalments
- 2nd dose of loan will be repaid in 12-24 months
- 3rd dose of loan will be repaid in 2-5 years on instalment basis
- 4th dose onwards: Loan will be repaid within 3-6 years in suitable instalments.