Micro Credit to Self Help Groups

Scheme to be implemented through Bank. The SHGs provided Revolving fund / Grant with regularly savings over a period of 6 months based on Credit rating can avail Micro Credit.
PATTERN OF ASSISTANCE:
In the First phase each member of the Group will be provided Rs.10,000/- for viable economic activity. In the Second phase further Credit facility of Rs.20,000/- to each member of the group (i.e. double the earlier loan) subject to regular & full payment of Bank Loan availed. Subsequently last phase credit facility of Rs. 30,000/- to each member of the group subject to regular & full payment of Bank Loan availed.
Eligibility:
1. Minority women and must be a member in self-help group
2. Self help Groups having availed Revolving fund from DRDA and Municipalities are also eligible after (6) months of availment of Revolving Fund.
3. Homogeneous (Minority) groups are eligible for availing Micro Credit from APSMFC
4. Heterogeneous Groups (Mixed Groups) in which 80% minorities & 20% belonging to SC,ST,BC and other OBCs are also eligible for Micro Credit.
5. Senior SHGs i.e. (2) years above groups who have not availed revolving fund from any Government Agency are also eligible for Micro Credit.
6. Annual Income for Minority families should be below Rs.50,000/- per annum.
Note: Self help Groups who are having accounts in Mutually Aided Co-Operative Societies (MACS) successfully operating are also eligible for Micro Credit loan subject to their operation in accordance to the MACs act.
Pattern of Assistance:
1. 50% subsidy from Corporator, subject to maximum of Rs.30,000/-
2. 10% Group Savings
3. Remaining Bank Loan
Interest Subsidy: (Pavala Vaddi):
To ensure fiscal discipline and prompt repayment of Bank loan by each member of the group interest subsidy to reduce interest burden by subsiding the interest over and above 3% charged by bank.
The Detailed guidelines are available in G.O.Ms.No.30,Dt.23-07-2008 at downloads (Government Orders)