Sunday, August 5, 2012


The scheme has been formulated by NABARD in association with GOI to bring out a viable and self-sustainable model for promotion and financing of Women Self Help Groups (WSHGs) by involving an anchor NGO in each of the selected backward districts of the country. These anchor NGOs besides promoting and nurturing SHGs will also be involved in tracking and monitoring the performance of SHGs promoted under the scheme apart from being responsible for loan repayments.
 The salient features of the scheme are as under:
  An anchor NGO to be selected by Lead District Manager (LDM) in consultation with the District Development Manager (DDM), NABARD and District Level Credit Committee (DLCC) in each of the identified district for implementation of the project.
  The scheme would be implemented primarily through two nodal bank branches, having CBS facility, in each block of the identified districts.
  The identified bank branch will enter into a MoU with the identified NGO.
  The identified NGOs will be eligible for grant assistance from NABARD upto a maximum of Rs.10,000 per SHG promoted and nurtured which will be released to them as per the schedule
 mentioned in para-8 of the operational guidelines (attached with this circular).
  Loans to new SHGs promoted will preferably be under the cash credit mode and Rate of Interest will be 05% above base rate.
  A service charge of 5% per annum on monthly average loan outstanding of SHGs shall be paid by the bank to the respective NGOs after deducting the amount of overdues in SHG loan accounts if any.


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