Business

Get SBI Collateral Free Loan up to Rs 10 Lakh on 31st March 2023, Scheme ENDS

January 2, 2023
Bharat Times

New Delhi: State Bank of India is offering collateral free loans up to Rs 10 lakh to Self Help Groups with an attractive interest rate. SBI SHG Group Shakti Abhiyan which started from 1st October 2022 will end on 31st March 2023.

Under SBI SHG Samagrahi Shakti Abhiyan, SHGs can avail loans at attractive interest rates. For loans up to Rs 3 lakh – rural women groups in all districts – the interest rate is 7 per cent. While the interest rate for Rs 3 lakh to Rs 5 lakh is 1 year MCLR and for above Rs 5 lakh the interest rate – for all SHGs – is 9 per cent.

SBI has tweeted, ‘SBI is empowering Self Help Groups (SHGs) with excellent benefits on credit facilities.’

SBI’s website states that as on March 31, 2022, the bank’s loan to SHGs is Rs 24,023 crore to 8.71 lakh SHGs, of which 91% are women. State Bank of India provides loans to Self Help Groups to meet the entire credit requirements of the groups like income generating activities, social needs like housing, education, marriage and loan swapping.

The bank provides both term loan and cash credit limit to the SHGs.

As per RBI Circle no. FIDD.GSSD.CO.BC. No. 09/09.01.003/2021-22 dated 09 August 2021, collateral free loans to Self Help Groups under DAY-NRLM have been increased from Rs. 10 lakh to 20 lakh Rs. As per the operational guidelines issued by NABARD, SHGs can be sanctioned savings linked loans by banks (savings to loan ratio varying from 1:1 to 1:4). However, in case of matured SHGs, loans may be given beyond the limit of four times the savings at the discretion of the bank.

No collateral and no margin will be levied to the SHG to the extent of ₹10.00 lakh. No lien should be placed on the savings bank account of the SHG, and no deposit should be insisted upon while sanctioning the loan.