Cent SHG bank Linkage scheme

Purpose of loan

* To finance SHGs for their internal lending / Group activity.


* SHGs

Nature of facility

* Revolving Cash Credit/ Term Loan.

Eligible quantum of CC limit /
Term Loan put together

* Quantum of limit (fixing of overall limit for 5 years) with maximum of Rs 10.00  lacs per group
In the initial years of establishment the ratio should be 1: 1 and it can be gradually increased to ratio of 1:4 of savings.

Interest Rate

Upto Rs3,00,000/-
Above Rs3.00 lakh to Rs10.00 lacs


MCLR + 1.35%
MCLR + 2.50%

Processing Charges

Upto Rs 3 Lakh/- : NIL

Above Rs 3 Lakh/-: @0.30%

UpFront Fee

Upto Rs 3 Lakh/- : NIL

Above Rs 3 Lakh/-: 50% of 1.25%(i.e. 0.625%) 

Period of loan

 Cash credit: Limit for 5 years subject to annual review.