An informal group of individuals coming together for the purpose of availing a bank loan through the group mechanism against mutual guarantee in order to engage in similar type of economic activities.

  • Loan Limit :  is maximum Upto Rs. 30 Thousand per Borrower.
  •  Repayment: is maximum 36 months.
  •  No Pre-payment Penalty.
  •  Rate of Interest: As per interest rate decided by B.O.D..

  •  Members should be of similar socio economic status, background and environment carrying out small business and allied activities agreeing to form a group so that the group would be homogeneous and organised and to develop mutual trust and respect.
  • The members should be residing in the same locality and should know & trust each other.
  • None of the group member should be a defaulter to any formal financial institution.
  • A Group should not have more than one person from a family.
  • The Group should select a good/able/active leader for to ensure leadership role for the benefit of all the Group members. However, care should be taken to ensure that benami loans are not cornered by the group leader
  • The group should be ideally of 4 to 10 members to enable the group members to offer mutual guarantee

  •  Duly filled form with:
    • i. Residential Proof of Applicant(s)
    • ii. PAN Card of Applicant(s)
    • iii.KYC of Applicant(s)
    • Joint liability agreement