Multi Purpose Credit | Micro Enterprises Credit | Dairy Promotion Credit

Micro-Enterprises Credit
 

Concept

For farmers with small land holdings, agriculture is becoming an increasingly risky livelihood. Further, a large majority of the rural poor have little or no access to land.

Thus, there is an imperative need to look at other options of livelihood. Micro-enterprises, like petty trade and small business development (SBD) prove to be an important alternative source of income.

Eligibility

1. Individuals who own less than one (1) acre of land.
2. Loan should be primarily for expansion of existing income generation activities.
3. Members of Self-Help Groups, who, attend group meetings, save money on a regular basis and participate in the affairs of the group, are eligible for loans under the Multi-Purpose Credit.
4. There should be a minimum of 10 and maximum of 20 members for each Group
5. However, women, having previous loans outstanding, to the group, they are attached to, are not eligible for this credit.
6. The loan quantum per group will depend on factors such as Age of Self Help Group, their savings, internal rotation of their savings,

Terms and Conditions

1. The loan will have to be repaid, along with interest, fixed from time to time, in Equated Monthly Installments (EMIs).
2. The period of repayment (tenor), will be 6-12 months and loan repayment will start in exactly one-month’s time from the date of release of loan.
3. All group members will have to give surety.
4. SHG members should have a minimum of two (2) meetings per month.
5. Savings and subscription to SHGs will be compulsory for all members.
6. Loans will be given after grading, screening etc.