Bank of Maharashtra SHG Loan Application
Bank of Maharashtra SHG Loan Application from Download
The Bank of Maharashtra offers specific credit facilities to Self Help Groups (SHGs) to support local livelihoods and promote financial inclusion. [1, 2]
The key points of the Bank of Maharashtra SHG Loan Application and financing scheme include:
1. Core Eligibility Criteria
- Active Existence: The SHG must be actively operating for at least 6 months based on their account books (not from the savings account opening date). [3]
- Defunct Groups: Defunct SHGs can qualify for credit if they are revived and stay active for at least 3 months. [3]
- The Panchasutras: Groups must diligently follow the five core principles: regular meetings, regular savings, regular inter-loaning, timely repayment, and up-to-date account books. [3]
- Grading: The group must meet the grading standards established by NABARD. [4]
2. Loan Structure and Doses
The bank emphasizes sequential loan increments (“multiple doses”) linked to the group’s corpus: [3]
- First Dose: 6 times the existing corpus or a minimum of ₹1.5 lakh, whichever is higher.
- Second Dose: 8 times the corpus at the time of renewal/enhancement or a minimum of ₹3 lakh, whichever is higher.
- Third Dose: A minimum of ₹6 lakh determined by the group’s Micro Credit Plan (MCP).
- Fourth Dose Onwards: Above ₹6 lakh, custom-tailored to the MCP. [3, 4]
3. Collateral, Margin, and Guarantees
- Up to ₹10 Lakh: Zero collateral and zero margin required. The bank cannot place a lien on the SHG’s savings bank account.
- Above ₹10 Lakh up to ₹20 Lakh: No collateral required, but the entire loan amount must be covered under the Credit Guarantee Fund for Micro Units (CGFMU). A margin up to 10% may apply to the amount exceeding ₹10 lakh. [3]
4. Loan Usage and Repayment Periods
- Productive Purpose: For higher loans, a set percentage must be utilized for income-generating tasks (at least 50% for loans over ₹1 lakh, 75% for loans over ₹4 lakh, and 85% for loans over ₹6 lakh). [3]
- Repayment Timeline: The repayment spans 24 to 36 months for the first dose, extending up to 60 to 84 months by the fourth dose, via monthly or quarterly installments. [3, 5]
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