NATIONAL RURAL LIVELIHOOD MISSION
(NRLM)
03 February 2015, Chennai
Implementation arrangements under NRLM
State Missions – Dedicated manpower
State Mission
Management Unit
(SMMU)
6 – 20 member team
with thematic
specializations
District Mission
Management Unit
(DMMU)
6-8 member team
responsible for
programme
implementation at
District level
Block Mission
Management Unit
(BMMU)/ Project
Facilitation Teams
(PFT)
5 member team
responsible for
programme
implementation at
Block level
8-10 Community
Cadres at each Cluster
(28-40 Gram
Panchayats)
Consultation mechanism with banks
• Central Level Coordination Committee (CLCC)
• IBA sub committee at the national level
• NRLM Sub-committee under SLBC
• NRLM Sub-committee under DCC
• BLBC with participation of community
representatives
Community Institution Architecture
(250 – 300 SHGs)
 Monitoring Sub Committee
 Repayment Sub committee
 Convergence Sub Committee
CLF
 SHG Monitoring Sub Committee
 Bank Linkage Sub committee
 Asset Verification Sub Committee
 Social Action Sub Committee
SHGs
• CLF Accountant
• Bank Mitra
(15 – 25 SHGs)
• VO Book Keeper
• Community Facilitator
V.O
SHGs
SHGs
SHGs
SHGs
Self Help Groups (10 -15 members)
SHGs
SHG
Book Keeper
Bank Linkage Mandate under
NRLM
“Each poor Household is able to access
credit of at least Rs 1 lakh in multiple
doses (over 4-5 years)”
SHG Capitalization Strategy
Step by step process
From 1st
Meeting
Internal
Lending
2 Months
3-4
Months
RF
SB A/C
opening
RF : Revolving Fund
MCP: Micro Credit Plan
CIF: Community Investment Fund
6-8
Months
MCP
prepared
6-8
Months
CIF
6 -12
Months
Bank
Credit – 1st
Linkage
24 -30
Months
Bank Credit
– 2nd
Linkage
36-40
Months
Bank
Credit –
3rd
Linkage
Four Banks for poor
BANK
CLUSTER FEDERATION
VILLAGE
FEDERATIO
N
SHG
MASTER CIRCULAR ON NRLM -Key points
• Revolving Fund (RF): RF support to SHGs which are active for
a minimum period of 3/6 months and ‘Panchasutra’ - Rs
10000 – Rs 15000 per SHG
• Community Investment support Fund (CIF) : CIF will be
provided to the SHGs in the intensive blocks, routed through
the Village level/ Cluster level Federations
• Capital Subsidy has been discontinued under NRLM
Lending Norms
Eligibility criteria for the SHGs
• SHG should be in active existence at least 6 months &
following ‘Panchasutra’.
• Revived SHGs are also eligible for credit if they are continue
to be active for a minimum period of 3 months.
• Grading as per norms fixed by NABARD. As and when the
Federations of the SHGs come to existence, the grading
exercise can be done by the Federations to support the Banks.
Loan amount
• First dose: Rs. 50,000 or 4-8 times the corpus during the year
whichever is higher.
• Second dose: Rs. 1 lakhs or 5- 10 times the existing corpus and
proposed saving during the next twelve months, whichever is
higher.
• Third dose: Minimum of Rs. 2 lakhs, based on the MCP prepared by
the SHGs and appraised by the Federations/Support agency
• Fourth dose onwards: Loan amount can be between Rs. 5-10 lakhs
for fourth dose and/or higher in subsequent doses. The loan
amount will be based on the MCP
Type of facility and repayment
• SHGs can avail either Term loan or a CCL loan or both based
on the need.
Repayment schedule could be as follows
• First dose: 6-12 installments
• Second dose: 12-24 installments
• Third dose - based on MCP - repayment either
monthly/quarterly /half yearly based on the cash flow (2 to 5
Years)
• Fourth dose onwards: repayment has to be either
monthly/quarterly /half yearly based on the cash flow (3 to 6
Years)
Security and Margin
No collateral and no margin will be charged upto Rs. 10.00
lakhs limit to the SHGs
INTEREST SUBVENTION
TO
SELF HELP GROUPS
Interest Subvention scheme – Credit limit Rs 3 lakhs
Parameter
Category-I districts
Category-II districts
1 Coverage
Limited to selected 150 districts
2 Eligibility
All women SHGS are eligible for IS
Benefit &
3 eligibility
Condition
 SHGs will be eligible for loans
from banks at upfront 7% per
annum;
 In case of prompt repayment
additional 3% IS. Thus effective
interest rate is 4% .
4
Release
mehanism
5 Nodal Agency
 Banks will be subvented
Remaining 490 districts
NRLM compliant women
SHGs are eligible for IS
 IS available on prompt
repayment only
 IS will be equivalent to
the difference between
lending rate of banks and
7% per annum
 SHGs will be subvented
 Difference between the
bank's lending rate and
7% (subjected to a max.
of 5.5%)
 Canara Bank for PSBs & Pvt Banks
 NABARD for RRBs & Cooperative Respective SRLM
Banks
Interest Subvention Cat. – I (150 districts)
Role of Banks
• Banks will lend to all women SHGs at upfront 7% per annum
(upto Rs 3 lakhs)
• Banks will also pay additional interest subvention of 3% to SHG
loans accounts being serviced promptly
• Bank will submit claims pertaining to interest subvention to
Canara Bank for further submission to MoRD for release of
claims.
Role of MoRD & SRLMs
• MoRD will subvent banks to as per DFS approved rate Weighted Average Interest Charged (WAIC)
• SRLMs will undertake initiatives for spreading on the scheme
Weighted Average Interest Cost (WAIC)
As prescribed by DFS
Banks
WAIC
Interest to be subvented
above 7%
HDFC Bank
18.00
5.5
ICICI Bank
14.26
5.5
Yes Bank
20.50
5.5
Axis Bank
12.68
5.5
J&K Bank
13.00
5.5
Karur Vysy Bank
11.28
4.28
Dhanalaxmi Bank
13.00
5.5
Ratnakar Bank
18.00
5.5
South Indian Bank
14.50
5.5
Federal Bank
12.70
5.5
ING Vysy Bank
19.05
5.5
Indus Ind Bank
No lending to WSHG
NA
Kotak Mahindra Bank
No lending to WSHG
NA
Tamil Nadu Mecantile Bank
No lending to WSHG
NA
Interest Subvention Cat. – II (490 districts)
Role of Banks
• Banks will lend to women SHGs at regular lending rates
• Banks to regularly share data with NRLM on loans disbursed
to women SHGs directly from CB
Role of State Missions
• State Missions will identify ‘NRLM Compliant SHGs’
• Based on the data shared by banks, promptly repaying SHGs will
be identified.
• State Missions will transfer the amount of interest subvention
directly to SHG loan a/c.
SHG Bank Linkage
How are Private Banks performing?
Share in Credit disbursement to SHGs (FY13-14)
7%
26%
59%
8%
Public Sector Banks
Private Sector Banks
Regional Rural Bank
Cooperative Bank
Region-wise penetration by Pvt Banks (2013-14)
4.67%
12.58%
1.21%
81.54%
Northern Region
Western Region
Central Region
Southern Region
Growth in disbursement of loan by Pvt Banks
100000
2500
87976
No. of SHG Linked
80000
1923.62
69843
70000
60000
1500
1293.33
50000
40000
30000
20000
10000
2000
1000
29557
500
546.78
0
0
2011-12
No. of SHG Linked
Loan Amount
2012-13
2013-14
Loan Amount (Rs Cr)
90000
Average loan Size to SHGs
Amount of Credit Per SHG (Rs)
250000
218652
200000
184991
185176
2011-12
2012-13
150000
100000
50000
0
2013-14
SHGs Bank Linked
S.No.
1
2
3
4
5
6
7
States
TAMIL NADU
KARNATAKA
RAJASTHAN
KERALA
MP
MAHARASHTRA
GUJARAT
Total
No. of SHGs
% of SHG
Estimated no having Loan
Share of Pvt
having loan
of SHGs
o/s
Banks
outstanding
(Mar 2014)
4,46,671
70%
10%
6,36,000
3,37,196
67%
6%
5,00,000
1,29,830
56%
8%
2,31,763
2,29,964
1,17,303
51%
18%
81,030
51%
6%
1,59,457
2,04,355
30%
12%
6,87,717
61,848
30%
3%
2,08,410
26,53,311 13,78,233
Source: Status of Microfinance 2013-14, NABARD
SRLM
- Promotion of SHG & Fedn
- Capacity Building of CBOs
- Financial literacy, counselling services on
savings, credit and Micro-investment
Planning
- Placement of Bank Sakhi
- Institutionalizing CBRM for ‘Zero NPA’
NRLM
1. Policy Formulation
2. Project Financing
3. Technical Support
Pvt Banks
SHG
- Opening of SB a/c
- Channeling benefits to SHG
& members – Community
Funds/
Interest
Subvention/
other
entitlements
- Credit Linkage of SHGs
Expectation From Private Sector Banks
• Much greater Partnership with SRLMs for lending to
women SHGs
• Data sharing on loan disbursed to women SHGs on
monthly basis.
• Assign following codes to all accounts of SHGs
• Unique code for Women SHGs – Assign gender
based codes for SHGs-Male, Female as well as
mixed irrespective of promoting agency
• Unique code for NRLM – For both S/B and loan
accounts of women SHGs
• channel Interest Subvention benefit for Women SHGs
Thank You