Loan Details
The SHGs at the first instance can avail Rs.1,00,000/-as loan by depositing Rs.10,000/- as a fixed deposit. The loan is repaid in 10 monthly installments. At present SHGs can avail a maximum of Rupees Five Lakhs as loan, which is fully repaid in 10, 15, or 20 monthly instalments.The interests are charged @ 16.50% per annum. Loan interest is calculated in EMI basis. SHGs, who are rated, according to criteria givenby the NABARD bank, will be eligible for loan. Furthermore, the SHGs will have to pay 10% of the loan amount as share capital or deposit at FAMCO. Once the loan is repaid fully, the group will get an increased loan (Rs.2,00,000/-) as decided by the Board based on the 10% of the loan amount as deposit, for the needs of the members of the SHGs. The interest to the depositors are credited by the end of each financial year, however, if the respective depositor required return of the interest earlier, it is also possible each month or per quarter/biannual.