Self Help Group is a concept emerged in the direction of helping rural poor by forming groups so that they will improve their living conditions through voluntary participation in thrift and availing credit. Micro finance is the provision of thrift and credit and other financial services and products of very small amount to the poor in rural, semi-urban and urban areas for enabling them to raise income levels and improve their standard of living

To evolve supplementary credit strategies for meeting the credit needs of the rural poor by combining the flexibility, sensitivity and responsiveness of the informal credit system with the strength of technical & administrative capabilities and financial resources of formal credit institutions

• Formation of SHG will be done at village level with minimum of 10 members and maximum of 20 members having the age group of 18 to 60 years. SHGs will be formed with married poor women and with minimum savings of Rs.100/- each per month
• The SHG shall not consist of more than 20 persons. ( Association or partnership consisting of more than 20 persons for the purpose of carrying on any business that has for its object the acquisition or gain by the said association or by the individual members thereof"

• NRLM( Upto 3.00 lakhs) - 7.00%
• NRLM above 3.00 lakhs and Upto 5.00 Lakhs - 10.00% (SHG CC)
• NRLM above 5.00 Lakhs - 13.00% (SHG CC)
• NULM( Upto 5.00 lakhs) - 12.50% (SHG CC)
• NULM( Above 5.00 lakhs) - 13.00% (SHG CC)
• Other SHG( Upto 5.00 lakhs) -12.50% (SHG CC)
• Other SHG(Above 5.00 lakhs) -13.00% (SHG CC)

The eligible amount of Cash Credit limit is to be arrived at based on the existing corpus (accumulated monthly savings/thrift + Revolving fund, if any + interest on savings + interest on internal lending) PLUS anticipated amount of savings/corpus of the SHG and assessment should be made for the next 5 years
It has been decided to allow up to 6 times of existing corpus + expected savings for the next 5 years or Rs.10 lakhs, whichever is lower for the purpose of arriving at the eligible cash credit limit.

From the 2nd dose onwards, the loan eligibility will be calculated at 8 times of existing groups.

KYC of the applicants.

Group resolution.

direct link to service charges

Advances granted to SHGs up to Rs.12 lakhs for the purpose of lending to group members are collateral free advances and are treated as secured loans in terms of RBI Circular RBI/2021-22/83/FIDD.GSSD.CO.BC.No.09/09.01.003/2021- 22 dated 09.08.2021

Coverage under CGFMU for loans to Self Help Groups NRLM:
• For loans to SHGs up to 10.00 lakh.