30. Scheme for Financing Micro Finance Institutions(MFIs) / Non-Government Organisation(NGOs)
Purpose
Routing micro credit through NGOs / MFIs functioning as financial intermediaries. With the ultimate aim of increasing the outreach by financing large number of Self Help Groups.
Eligibility
The NGO / MFI, to be eligible for finance under the scheme, will have to be of any one of the following:
(i) Societies registered under Societies Registration Act, 1960 or similar State Act.
(ii) Trusts registered under Public Trust Act, 1920 or similar Act.
(iii) Companies registered under Companies Act, 1956 including Section 25 companies.
(iv) Non Banking Financial Companies providing financial services to SHGs which satisfy the following criteria as laid down by RBI may only be taken up for financing:
(v) Specialist and other Co-operatives such as Mutually Aided Co-operative Societies,etc.
Security: Hypothecation of Book Debts of the NGOs / MFIs. And , personal guarantee of the Promoters / Directors and charge over other available assets
Repayment
Term loans are repayable in : monthly / quarterly / half-yearly. Instalments depending on the project / purpose. However, total repayment period should not exceed 3 years.Cash credit loans are to be renewed annually.
| Source: http://www.statebankofindia.com/portal/agri |
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