3State Missions – Dedicated manpower 6 – 20 member teamwith thematic specializations6-8 member team responsible for programme implementation at District level5 member team responsible for programme implementation at Block level8-10 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)
4Consultation mechanism with banks Central Level Coordination Committee (CLCC)IBA sub committee at the national levelNRLM Sub-committee under SLBCNRLM Sub-committee under DCCBLBC with participation of community representatives
5Community Institution Architecture (250 – 300 SHGs)Monitoring Sub CommitteeRepayment Sub committeeConvergence Sub CommitteeCLF AccountantBank MitraCLFSHG Monitoring Sub CommitteeBank Linkage Sub committeeAsset Verification Sub CommitteeSocial Action Sub Committee(15 – 25 SHGs)VO Book KeeperCommunity FacilitatorV.OSHGBook KeeperSHGsSelf Help Groups ( members)5
6Bank 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)”
8Four Banks for poorVILLAGE FEDERATIONSHGBANKCLUSTER FEDERATION
9MASTER 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 SHGCommunity Investment support Fund (CIF) : CIF will be provided to the SHGs in the intensive blocks, routed through the Village level/ Cluster level FederationsCapital Subsidy has been discontinued under NRLM
10Lending NormsEligibility criteria for the SHGsSHG 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.
11Loan amountFirst 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 agencyFourth 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
12Type 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 followsFirst dose: 6-12 installmentsSecond dose: installmentsThird 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 MarginNo collateral and no margin will be charged upto Rs lakhs limit to the SHGs
14Interest Subvention scheme – Credit limit Rs 3 lakhs Parameter Category-I districtsCategory-II districts1CoverageLimited to selected 150 districtsRemaining 490 districts2EligibilityAll women SHGS are eligible for ISNRLM compliant women SHGs are eligible for IS3Benefit & eligibility ConditionSHGs 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 onlyIS will be equivalent to the difference between lending rate of banks and 7% per annum4Release mehanismBanks will be subventedSHGs will be subventedDifference between the bank's lending rate and 7% (subjected to a max. of 5.5%)5Nodal AgencyCanara Bank for PSBs & Pvt BanksNABARD for RRBs & Cooperative BanksRespective SRLM
15Interest Subvention Cat. – I (150 districts) Role of BanksBanks 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 promptlyBank will submit claims pertaining to interest subvention to Canara Bank for further submission to MoRD for release of claims.Role of MoRD & SRLMsMoRD will subvent banks to as per DFS approved rate - Weighted Average Interest Charged (WAIC)SRLMs will undertake initiatives for spreading on the schemeInterest Subvention Cat. – I (150 districts)
16Weighted Average Interest Cost (WAIC) As prescribed by DFS BanksWAICInterest to be subvented above 7%HDFC Bank18.005.5ICICI Bank14.26Yes Bank20.50Axis Bank12.68J&K Bank13.00Karur Vysy Bank11.284.28Dhanalaxmi BankRatnakar BankSouth Indian Bank14.50Federal Bank12.70ING Vysy Bank19.05Indus Ind BankNo lending to WSHGNAKotak Mahindra BankTamil Nadu Mecantile Bank
17Interest Subvention Cat. – II (490 districts) Role of BanksBanks will lend to women SHGs at regular lending ratesBanks to regularly share data with NRLM on loans disbursed to women SHGs directly from CBRole of State MissionsState 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.
18SHG Bank Linkage How are Private Banks performing?
21Growth in disbursement of loan by Pvt Banks No. of SHG LinkedLoan Amount (Rs Cr)No. of SHG LinkedLoan Amount
22Average loan Size to SHGs Amount of Credit Per SHG (Rs)
23No. of SHGs having Loan o/s % of SHG having loan outstanding SHGs Bank LinkedS.No.StatesEstimated no of SHGsNo. of SHGs having Loan o/s(Mar 2014)% of SHG having loan outstandingShare of Pvt Banks1TAMIL NADU6,36,0004,46,67170%10%2KARNATAKA5,00,0003,37,19667%6%3RAJASTHAN2,31,7631,29,83056%8%4KERALA2,29,9641,17,30351%18%5MP1,59,45781,0306MAHARASHTRA6,87,7172,04,35530%12%7GUJARAT2,08,41061,8483%Total26,53,31113,78,233Source: Status of Microfinance , NABARD
24SHG 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 SHGsNRLM1. Policy Formulation2. Project Financing3. Technical SupportSHG
25Expectation From Private Sector Banks Much greater Partnership with SRLMs for lending to women SHGsData sharing on loan disbursed to women SHGs on monthly basis.Assign following codes to all accounts of SHGsUnique code for Women SHGs – Assign gender based codes for SHGs-Male, Female as well as mixed irrespective of promoting agencyUnique code for NRLM – For both S/B and loan accounts of women SHGschannel Interest Subvention benefit for Women SHGs