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  • Canara

  • Scheme for Financing through shgs

The objectives of SHGs is to inculcate the habit of thrift, banking culture in availing loans for productive purposes and repaying the same over a period of time and in the process to gain the economic prosperity through loan / credit.

  • The purchaser should have good track record and have yielding estates
  • Non Estate owners may also be financed provided that it isassessed that the borrowers can, after purchase, will be able to develop the Estate on the desired lines (subject to State Law permitting such purchase).
  • The purchaser should preferably be our customer with satisfactory past dealings.
  • The purchaser should be experienced intheline, financially sound and should be in a position to bring in margin and service the debt.
  • Normally the purchaser/s and vendor/s should not be close relatives.
  • The intending buyer should qualify the State Government norms of being an agriculturist / satisfy the income criteria stipulated by the State Government in cases where loan is considered for purchase of areca garden.
  • Being a non-priority advance, the proposal shouldpreferably shall have spin off benefits in the form of deposits, other business support, non fund based income, etc.
  • The estate should preferably be a neglected one. The estate should have potential for realizing higher yields.
  • The total land holding including the land to be acquired should be within the land ceiling norms of respective State, whenever loan is considered for areca garden.
    The estate should have the potential to absorb substantial credit for other developmental activities.
Quantum and Margin Up to Rs 20.00 lakhs, margin nil and no collateral.
CGFMU For SHG Loans up to ₹20.00 Lakhs, coverage under CGFMU is mandatory.
Security Hypothecation of assets created out of Bank Finance.
Repayment for Term Loans
  • The first dose of loan may be repaid in 24-36 months in monthly/quarterly installments.
  • The second dose of loan may be repaid in 36-48 months in monthly/quarterly installments.
  • The third dose of loan may be repaid in 48-60 months based on the cash flow in monthly/quarterly installments.
  • From the fourth dose onwards, loans may be repaid between 60-84 months based on the cash flow in monthly/quarterly installments.
Rate of Interest

For Agriculture and allied activities (Excluding food and agro-processing units):

  • S.No 1: Upto ₹3.00 Lakhs – Rate: 7%
  • S.No 2: Above ₹3.00 Lakhs to ₹5.00 Lakhs – Rate: 1 Year MCLR
  • S.No 3: Above ₹5.00 Lakhs – Slab-wise based on Marks Secured:
    • A Grade: Spread over MCLR + 1.25%
    • B Grade: Spread over MCLR + 2.00%

For Food and Agro Processing Units:

  • S.No 1: Upto ₹3.00 Lakhs – Rate: 7%
  • S.No 2: Above ₹3.00 Lakhs to ₹5.00 Lakhs – Rate: RLLR
  • S.No 3: Above ₹5.00 Lakhs – Slab-wise based on Marks Secured:
    • A Grade: Spread over MCLR + 1.25%
    • B Grade: Spread over MCLR + 2.00%
PMJDY OD ₹5000 PMJDY OD for all women members having PMJDY OD.
In case of CCL Loans

In case of CCL, banks are advised to sanction a minimum loan of ₹6 lakhs to each eligible SHG for a period of 3 years with a yearly drawing power (DP). The drawing power may be enhanced annually based on the repayment performance of the SHG. The drawing power may be calculated as follows:

  • DP for the first year: 6 times of the existing corpus or a minimum of ₹1.5 lakhs, whichever is higher.
  • DP for the second year: 8 times of the corpus at the time of review/enhancement or a minimum of ₹3 lakhs, whichever is higher.
  • DP for the third year: Minimum of ₹6 lakh based on the Micro Credit Plan (MCP) prepared by SHG and appraised by the federations/support agency and previous credit history.
  • DP for the fourth year onwards: Above ₹6 lakhs, based on the MCP and appraised by the federations/support agency.
In case of term loans
  • First dose: 6 times of the existing corpus or a minimum of ₹1.5 lakh, whichever is higher.
  • Second dose: 8 times of the existing corpus or a minimum of ₹3 lakh, whichever is higher.
  • Third dose: Minimum of ₹6 lakhs, based on the MCP prepared by SHGs and appraised by the federations/support agency and previous credit history.
  • Fourth dose onwards: Above ₹6 lakh, based on the MCP and appraised by the federations/support agency and previous credit history.
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