Routing micro credit through NGOs / MFIs functioning as financial intermediaries. With the ultimate aim of increasing the outreach by financing large number of Self Help Groups.

Who are eligible?

The NGO / MFI, to be eligible for finance under the scheme, will have to be of any one of the following:

  • Societies registered under Societies Registration Act, 1960 or similar State Act.

  • Trusts registered under Public Trust Act, 1920 or similar Act.

  • Companies registered under Companies Act, 1956 including Section 25 companies.

  • Non Banking Financial Companies providing financial services to SHGs which satisfy the following criteria as laid down by RBI may only be taken up for financing:

    • Engaged in micro financing activities.

    • Licensed under section 25 of the Companies Act, 1956, which are not accepting public deposits from the purview of sections 45-IA(Registration), 45-IB (maintenance of liquid assets) and 45-IC (transfer of profits to Reserve Fund) of the RBI Act, 1934.

  • Specialist and other Co-operatives such as Mutually Aided Co-operative Societies,etc.

  • Any other type of institution that offer micro finance and related services may be considered on merits.

Track record
  • The NGO / MFI has been in existence for at least 12 months and/or it has a track record of running a successful micro credit programme at least for the last 6 months.

  • The NGO / MFI has partnership with a minimum of 200 SHGs.

  • Its activities should be secular in nature.

  • It maintains a satisfactory and transparent accounting system, MIS and internal audit system.

  • The NGO / MFI should be continuously profit making, where they are in existence for 2 years or more. In case of existence of less than 2 years, the Sanctioning Authority will ensure that the projected profit of the NGO / MFI should be sufficient to meet the repayment obligation of the loan.

  • The NGO / MFI should not be a defaulter to any Bank / Financial Institution.

  • Portfolio at risk of the NGO / MFI should be less than 5%. (Ratio of the amount overdue for 60 days or more to the total loans on a given date) 56

  • In case of takeover of NGO / MFI loan from other banks, all the terms and conditions for taking over of the loan will be applicable.

  • NGO / MFI must exhibit transparency in dealing with its borrowers like levying of service and other charges, etc.

  • NGO / MFI will not borrow from other sources for the same project for which loan from our Bank is being availed.

  • Loans below Rs 200 lacs -The NGO/MFI should score minimum scores in the scoring model of the bank. For the loan of above Rs 200 lacs they should have valid credit rating from any of the Micro Credit rating agencies, MCRIL, CRISIL, CARE, ICRA and Planet Finance.

Loan amount
  • Need-based repeat finance.

  • Requirement of finance to be worked out based on the health of the NGO / MFI and the business plan as per the appraisal format


Hypothecation of Book Debts of the NGOs / MFIs. And , personal guarantee of the Promoters / Directors and charge over other available assets

How to repay the loan?

Term loans are repayable in : monthly / quarterly / half-yearly. Instalments depending on the project / purpose. However, total repayment period should not exceed 3 years.Cash credit loans are to be renewed annually

How to apply for this loan?

You may contact our nearest branch or even talk to the marketing officers visiting your village