This is an opportunity for SHGs to Bank linkage Under NRLM ( National Rural Livelihood Mission) Project. In This Project we form an institution as SHG (Self Help Group), VO (Village Organization) then avail a small Capital of 10000-15000 Rs. as RF (Revolving Fund), 50000-75000 Rs. as CIF ( Community Investment Fund ) to invest in livelihood activity.
In the recent years, the government has taken the initiative to connect the SHGs with the bank for more capital to invest, so that communities in distant areas can uplift and gradually reach to a sustainable day to day life and develop access to a larger market.
As BLFC, my vision is to all the SHGs to have sufficient amount of finance to capitalize on their livelihood activity by connecting them with different stakeholders. CC Linkage is one of the best ways to provide a fund to the grassroots for their steady development. With regular transaction and following the bank norms, Bank may avail any desired amount of loan to any SHGs as CC linkage for long Term at low interest. With this fund, the community can participate in a variety of livelihood activities empowering them for gradual development.
We provide training of financial Inclusion to the SHGs in which we discussed the usefulness of CC Linkage and how it can help community member’s vision for the gradual increase of capital. Also, for the rapport and regular transaction, in our observation near about 36% SHGs has got interest subvention back. Along with that, we motivate vibrant VO members to share their experience and engagement with the bank in the CBRM meeting and in the grassroots institutions to inspire others.
If an SHG keen to take a loan from Bank then bank documents will be filled out By Bank Mitra with the following details and documents.
1 Minutes of SHG
2 Bank Resolutions
3 KYC of SHG’s Members
4 Saving and Loan Account Details of SHG
Then we submit the documents to the bank and finally, the SHG is granted a bank loan. Most importantly, an SHG has to pay the interest to the amount which has debited only, not to the total sanctioned amount.
Achievement and Their Utilization
Out of 938 SHGs which are registered under Mahila Vikas Mandal Palkot, we have successfully linked 800 SHGs with the Bank for CC Linkage. The SHGs with CC linkage are engaging themselves with different types of farm and non-farm livelihood activity.