Micro
financing scheme
Objective
The objective of the scheme is to cater the Micro Finance needs of
small entrepreneurs belonging to the backward classes and minorities. Loans up to
Rs.Twenty thousand only per beneficiary is given under Micro Finance.
It is desirable to disburse loans through Self-Help Groups (SHG).
Salient Feature of the Scheme :
1. Maximum loan limit per beneficiary - Rs.25,000/-
2. Maximum repayment period - 21 months
3. Maximum number of persons in SHG - 20
Implementation:
The scheme is to be implemented through NGOs in rural and urban areas
by way of financing the beneficiaries through Self Help Group (SHGs)
preferably in the areas remained uncovered so far under any of such
schemes.
Eligibility
Loan should be given only for income generating activity to the members
of Backward Classes or minorities communities. Annual family income of the beneficiary should
be less than Rs.40,000/- in rural area and Rs.55,000/- in urban area.
Pattern of Finance
1. NBCFDC Loan through KSBCDC - 95%
2. Beneficiary /NGO contribution - 5%
Rate of Interest
To SHG 5% p.a
Eligibility of NGOs
The NGOs desirous of implementing the schemes should be :
1. Registered Organization and have completed at least seven years
after valid registration.
2. NGOs should have strong self help groups i.e. at least one year
old.
3. NGOs, who already possess experience of channelising Micro Credit
and also have good rate of recovery can only apply.
4. It should have a proper system of maintaining accounts and accounts
should be audited. |