1. NATIONAL RURAL LIVELIHOOD MISSION (NRLM)
03 February 2015, Chennai

2. Implementation arrangements under NRLM

3. State Missions – Dedicated manpower
6 – 20 member team
with thematic specializations
6-8 member team responsible for programme implementation at District level
5 member team responsible for programme implementation at Block level
8-10 Community Cadres at each Cluster (28-40 Gram Panchayats)
State Mission Management Unit (SMMU)
District Mission Management Unit (DMMU)
Block Mission Management Unit (BMMU)/ Project Facilitation Teams (PFT)

4. Consultation mechanism with banks
Central Level Coordination Committee (CLCC)
IBA sub committee at the national level
NRLM Sub-committee under SLBC
NRLM Sub-committee under DCC
BLBC with participation of community representatives

5. Community Institution Architecture
(250 – 300 SHGs)
Monitoring Sub Committee
Repayment Sub committee
Convergence Sub Committee
CLF Accountant
Bank Mitra
CLF
SHG Monitoring Sub Committee
Bank Linkage Sub committee
Asset Verification Sub Committee
Social Action Sub Committee
(15 – 25 SHGs)
VO Book Keeper
Community Facilitator
V.O
SHG
Book Keeper
SHGs
Self Help Groups ( members) 5

6. Bank Linkage Mandate under NRLM
“Each poor Household is able to access credit of at least Rs 1 lakh in multiple doses (over 4-5 years)”

7. SHG Capitalization Strategy
Step by step process
36-40 Months
Internal Lending
SB A/C opening RF
MCP prepared
CIF
Bank Credit – 1st Linkage
Bank Credit – 2nd Linkage
Months
6 -12 Months
6-8 Months
Bank Credit – 3rd Linkage
6-8 Months
3-4 Months
2 Months
From 1st Meeting
RF : Revolving Fund
MCP: Micro Credit Plan
CIF: Community Investment Fund

8. Four Banks for poor
VILLAGE FEDERATION
SHG
BANK
CLUSTER FEDERATION

9. MASTER CIRCULAR ON NRLM -Key points
Revolving Fund (RF): RF support to SHGs which are active for a minimum period of 3/6 months and ‘Panchasutra’ - Rs – Rs per SHG
Community Investment support Fund (CIF) : CIF will be provided to the SHGs in the intensive blocks, routed through the Village level/ Cluster level Federations
Capital Subsidy has been discontinued under NRLM

10. Lending Norms
Eligibility criteria for the SHGs
SHG should be in active existence at least 6 months & following ‘Panchasutra’.
Revived SHGs are also eligible for credit if they are continue to be active for a minimum period of 3 months.
Grading as per norms fixed by NABARD. As and when the Federations of the SHGs come to existence, the grading exercise can be done by the Federations to support the Banks.

11. Loan amount
First dose: Rs. 50,000 or 4-8 times the corpus during the year whichever is higher.
Second dose: Rs. 1 lakhs or times the existing corpus and proposed saving during the next twelve months, whichever is higher.
Third dose: Minimum of Rs. 2 lakhs, based on the MCP prepared by the SHGs and appraised by the Federations/Support agency
Fourth dose onwards: Loan amount can be between Rs lakhs for fourth dose and/or higher in subsequent doses. The loan amount will be based on the MCP

12. Type of facility and repayment
SHGs can avail either Term loan or a CCL loan or both based on the need.
Repayment schedule could be as follows
First dose: 6-12 installments
Second dose: installments
Third dose - based on MCP - repayment either monthly/quarterly /half yearly based on the cash flow (2 to 5 Years)
Fourth dose onwards: repayment has to be either monthly/quarterly /half yearly based on the cash flow (3 to 6 Years)
Security and Margin
No collateral and no margin will be charged upto Rs lakhs limit to the SHGs

13. Interest Subvention to self help groups

14. Interest Subvention scheme – Credit limit Rs 3 lakhs Parameter
Category-I districts
Category-II districts 1
Coverage
Limited to selected 150 districts
Remaining 490 districts 2
Eligibility
All women SHGS are eligible for IS
NRLM compliant women SHGs are eligible for IS 3
Benefit & eligibility Condition
SHGs will be eligible for loans from banks at upfront 7% per annum;
In case of prompt repayment additional 3% IS. Thus effective interest rate is 4% .
IS available on prompt repayment only
IS will be equivalent to the difference between lending rate of banks and 7% per annum 4
Release mehanism
Banks will be subvented
SHGs will be subvented
Difference between the bank's lending rate and 7% (subjected to a max. of 5.5%) 5
Nodal Agency
Canara Bank for PSBs & Pvt Banks
NABARD for RRBs & Cooperative Banks
Respective SRLM

15. Interest Subvention Cat. – I (150 districts)
Role of Banks
Banks will lend to all women SHGs at upfront 7% per annum (upto Rs 3 lakhs)
Banks will also pay additional interest subvention of 3% to SHG loans accounts being serviced promptly
Bank will submit claims pertaining to interest subvention to Canara Bank for further submission to MoRD for release of claims.
Role of MoRD & SRLMs
MoRD will subvent banks to as per DFS approved rate - Weighted Average Interest Charged (WAIC)
SRLMs will undertake initiatives for spreading on the scheme
Interest Subvention Cat. – I (150 districts)

16. Weighted Average Interest Cost (WAIC) As prescribed by DFS
Banks
WAIC
Interest to be subvented above 7%
HDFC Bank
18.00
5.5
ICICI Bank
14.26
Yes Bank
20.50
Axis Bank
12.68
J&K Bank
13.00
Karur Vysy Bank
11.28
4.28
Dhanalaxmi Bank
Ratnakar Bank
South Indian Bank
14.50
Federal Bank
12.70
ING Vysy Bank
19.05
Indus Ind Bank
No lending to WSHG NA
Kotak Mahindra Bank
Tamil Nadu Mecantile Bank

17. Interest Subvention Cat. – II (490 districts)
Role of Banks
Banks will lend to women SHGs at regular lending rates
Banks to regularly share data with NRLM on loans disbursed to women SHGs directly from CB
Role of State Missions
State Missions will identify ‘NRLM Compliant SHGs’
Based on the data shared by banks, promptly repaying SHGs will be identified.
State Missions will transfer the amount of interest subvention directly to SHG loan a/c.

18. SHG Bank Linkage How are Private Banks performing?

19. Share in Credit disbursement to SHGs (FY13-14)

20. Region-wise penetration by Pvt Banks (2013-14)

21. Growth in disbursement of loan by Pvt Banks
No. of SHG Linked
Loan Amount (Rs Cr)
No. of SHG Linked
Loan Amount

22. Average loan Size to SHGs
Amount of Credit Per SHG (Rs)

23. No. of SHGs having Loan o/s % of SHG having loan outstanding
SHGs Bank Linked
S.No.
States
Estimated no of SHGs
No. of SHGs having Loan o/s
(Mar 2014)
% of SHG having loan outstanding
Share of Pvt Banks 1
TAMIL NADU
6,36,000
4,46,671
70%
10% 2
KARNATAKA
5,00,000
3,37,196
67% 6% 3
RAJASTHAN
2,31,763
1,29,830
56% 8% 4
KERALA
2,29,964
1,17,303
51%
18% 5 MP
1,59,457
81,030 6
MAHARASHTRA
6,87,717
2,04,355
30%
12% 7
GUJARAT
2,08,410
61,848 3%
Total
26,53,311
13,78,233
Source: Status of Microfinance , NABARD

24. SHG NRLM 1. Policy Formulation
SRLM
- Promotion of SHG & Fedn
- Capacity Building of CBOs
- Financial literacy, counselling services on savings, credit and Micro-investment Planning
- Placement of Bank Sakhi
- Institutionalizing CBRM for ‘Zero NPA’
Pvt Banks
- Opening of SB a/c
- Channeling benefits to SHG & members – Community Funds/ Interest Subvention/ other entitlements
- Credit Linkage of SHGs
NRLM
1. Policy Formulation
2. Project Financing
3. Technical Support
SHG

25. Expectation From Private Sector Banks
Much greater Partnership with SRLMs for lending to women SHGs
Data sharing on loan disbursed to women SHGs on monthly basis.
Assign following codes to all accounts of SHGs
Unique code for Women SHGs – Assign gender based codes for SHGs-Male, Female as well as mixed irrespective of promoting agency
Unique code for NRLM – For both S/B and loan accounts of women SHGs
channel Interest Subvention benefit for Women SHGs

26. Thank You