SHG-BANK CREDIT LINKAGE

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SHG-BANK CREDIT LINKAGE

SHG-BANK Credit Linkage

SBI has actively participated in SHG-Bank Credit Linkage programme since its inception in 1992 as a pilot project of NABARD. Since then, the Bank has made a steady progress in financing SHGs. Our market share in SHG credit linkage is 25.25% (March 2022) among public sector Banks.

As on 31st March 2022, Bank’s lending to SHGs is Rs.24,023 crore to 8.71 lac SHGs, of which 91% are women.

Initiatives

  • Sensitisation of staff working in rural and semi-urban branches.
  • Training programmes on SHGs are conducted at 54 learning Centres and SBIRD, Hyderabad.
  • Close liaison with NGOs.
  • Lending to NGOs/ Federations of SHGs/ MFIs.
  • Training/skill up-gradation through 152 Rural Self Employment Training Institutes (RSETIs)
  • Financial Literacy Centers (FLCs): 341 FLCs conduct camps, seminars, and workshops to create financial awareness among people.
  • Scheme for promotion of Women SHGs implemented through anchor NGOs in 150 backward/ Left Wing Extremism (LWE) affected districts.
  • Cash credit facility provided to SHGs to facilitate flexibility in operation. SHG members can save variable amount over and above the minimum saving fixed by the group. This forms part of saving corpus for the purpose of arriving at loan limit to SHGs.
  • Scheme for financing (SHGs) of scheduled Tribes (STs) for channelizing the funds of National Scheduled Tribes Finance and Development Corporation (NSTFDC)
  • Under National Rural Livelihood Mission (NRLM) scheme, loans to Women SHGs are provided at 7%

FAQ

Ans. The Bank provides loans to SHGs for meeting entire credit requirements of the groups like income generation activities, social needs like housing, education, marriage, and debt swapping.

Ans.The Bank provides both Term Loans and Cash Credit limits to SHGs.

Ans.As per RBI circle no. FIDD.GSSD.CO.BC. No.09/09.01.003/2021-22 dated 09th Aug 2021, the collateral free loans to self Help Groups under DAY-NRLM has been increased from Rs. 10 lakhs to Rs.20 lakh.

As per operational guidelines issued by NABARD, SHGs may be sanctioned savings linked loans by banks (varying from a saving to loan ratio of 1:1 to 1:4). However, in case of matured SHGs, loans may be given beyond the limit of four times the savings as per the discretion of the bank

Ans. No collateral and no margin would be charged up to ₹10.00 lakh limit to the SHGs. No lien should be marked against savings bank account of SHGs, and no deposits should be insisted upon while sanctioning loans.

Ans.Group Corpus includes amount of savings in Bank account of SHG, amount utilized for internal lending and cash Balance with SHG.


Last Updated On : Tuesday, 12-07-2022

Interest Rates

8.60%* p.a.

w.e.f. 26.01.2023

*T&C Apply.

 

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