Self Help Groups are small groups of poor people. SHG loans are an important source of microfinance services to the poor. They act as a go-through for formal banking services to reach the poor, especially in rural areas. They also encourage the habit of saving among the poor. Self Help Groups are informal associations of 10 to 20 peoples, who come together to find ways to improve their living conditions. They are generally self-governed and peer controlled. People of similar economic and social backgrounds associate generally with the help of any PACS/MPCS/NGO or government agency and try to resolve their issues and improve their living conditions. In 1992, formed the SHG Bank linkage project, which is today the world’s largest microfinance project. From 1993 onwards, NABARD along with the Reserve Bank of India allowed SHGs to open savings bank accounts in banks. Members may also make small regular savings contributions from 6 months until there is enough money in the group to begin lending. Funds may then be lent back to the members or to others in the village for any purpose. In BDCC Bank, many SHGs are linked with banks for the delivery of micro-credit.

Nature of Loan: Loans to SHGs through PACS / Bank Branches.

Eligibility: Each Group should contain minimum 10 members and maximum 20 members.

Purpose:Members for meeting social needs, high cost debt swapping, construction or repair of home, construction of toilets and taking up sustainable livelihoods or any liable common activity started by the SHGs/Dairy or other small business.

Installment/Period: 1. Fresh group – 12 months.
                                 2. Repeat group – 24 months.

Rate of Interest:

1. Female (NRLM Scheme)
Upto Rs.5.00 Lakhs 12% interest (Net 0%) and above Rs.5.00 Lakhs 12% interest.

2. Male (State government scheme)
Upto Rs.5.00 Lakhs 12% interest (Net 4%) and above Rs.5.00 Lakhs 12% interest.

Documents:  1. Loan application with resolution of the group members.
                      2. Ration card BPL and Aadhar card Xerox copy.
                      3. Two copies of all members group photo.