PNB-1239

Acknowledgement
(To be handed over to SHG after submission of the Application Form)

Received the following Application form for loan

Name of SHG
Address

Application No
Savings Account No
Date of Receipt of
Application by branch

Signature

Branch

Bank

Date

Page 1 of 19
Form No For Official Use Only
Bank
Branch Customer ID
SB Account No Loan A/c No
Loan Type (CC/TL) Cash Credit

Term Loan
Product code
Date of Sanction
Sanctioned Amount in Rs.
Loan Terms in case of
term loan

Self Help Group Loan Application Form

Name of the SHG

Date of Formation No of SHG

members

Address Village/ City:…………… Block

GP: District:

SB A/C No
Loan A/c No (if any)

Supporting Agency
(if any)

Application for Loan

Cycle

Page 2 of 19
 Self Help Group Loan Application Form
To:

The Branch Manager

____________________________________ Bank
____________________________________ Branch
Dear Madam/Sir,
Sub:-Application for credit linkage

Affix passport
Affix passport Affix passport Affix passport
Sizephotograph
Size Photo
Size photograph Size photograph

Name : Name: Name:

Designation: Designation: Designation:
Address: Address: Address:

Mobile: Mobile: Mobile:

Saving Bank A/c No. Saving Bank A/c No. Saving Bank A/c No.

1. We, the duly authorized representatives of

________________________________________________________________(name of SHG)
_______________village/city________________________Block____________________District
hereby apply for a loan aggregating Rs. __________________/- (Rupees
__________________only) by way of Cash Credit (CC) / Term Loan (TL) for on-lending to our
members. A copy of resolution taken by our Self Help Group in this regard is attached.
2. A copy of the member-wise requirement of loan is enclosed (Compulsory from 3rd linkage
onwards)
3. We agree to repay the Term Loan loan amount as per the repayment schedule which may be
fixed by the Bank.
‘or/and’
We agree to operate the Cash Credit account satisfactorily and within the limit and shall repay the
interest charged in the Cash Credit account from time to time or on demand without demur as per
the terms and conditions stipulated by Bank.
4. A copy of the Inter-se Agreement executed by all the members of the group authorizing us inter
alia to borrow on behalf of the SHG is enclosed.

Page 3 of 19
5. We hereby declare that the particulars given above are true and correct to the best of our
knowledge and belief.
6. We hereby authorize the Bank to disclose all or any particulars or details or information relating to
our loan accounts with the Bank, to any other financial institution including NABARD, Government
or any agency as may be considered necessary or desirable by the Bank. It will be in order for the
Bank to disqualify the SHG from receiving any credit facilities from the Bank and or recall the
entire loan amount or any part thereof granted on this application, if any of the information

pertaining to the group, furnished herewith is found incorrect and/or containing misrepresentation of facts.

7. We undertake that the Credit Information Bureau (India)Ltd. and any other agency so authorized
may use, process the said particulars disclosed by the Bank in the manner as deemed fit by them
and I/We shall not raise any dispute in whatsoever manner regarding information/details
furnished/to be furnished to CIBIL/other authorities and same is binding on me/us.
8.

9. A copy of the financial status of our SHG as on ……………….. (date) is attached.

Yours faithfully,

1.
2.
3
[Signature of Authorized Representatives of SHG with Seal]

Page 4 of 19
 Resolution by SHG for taking loan from bank
Name of SHG:
Address:
Date of Formation:
Total no of Members: Name of Facilitating Agency:
----------------------------------------------------------------------------------------------------------------------------- ----------------------
Resolution for taking loan from bank
Today on …………(Date), at the meeting of ………………………………………..(name of SHG) at
……………………..(meeting place of SHG/ address) in presence of all its members, it is resolved that our
………………………………………..(name of SHG) will seek loan of Rs …....., (in words)…………………….. from ----
------bank. It has also been further resolved that Smt…………………………….(Designation ……………………);
Smt……………………………… (Designation ……………………) and Smt ………………………………..( Designation
……………………) will sign all the necessary document related to the loan application to bank on behalf of the
………………………………………..(name of SHG). We also authorize them to execute the acknowledge of debts as may
be required by the Bank.

We all members hereby agree to the above decision.

Sl Name of SHG members Name of Gender

No Father/Husband (Male/ Signature /Thumb Impression
Female)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Signature Signature Signature

(Designation ……………….) (Designation ……………….) (Designation ……………….)

Seal of Self Help Group

Page 5 of 19
 Details of Member wise Loan Requirement (As per Micro Credit Plan)
(Compulsory from 3rd credit linkage onwards)

Name of the SHG:-

Date of formation: No. of Members:
Address

Member-wise details of proposed investment, sources of fund & resultant Net Surplus of the family
Total
Annual
Income Annual Annual
from net repayment
Amount of Total
various income for the
loan Annual Annual
S.N. Name of member* Purpose of sources:- before proposed
Required Expenditure Surplus
investment IGAs, repaymen loan &
from SHG (Rs.) (Rs.)
Wages, t of loan existing
(Rs.)
Grants installme loan, if any
from Govt. nt (Rs.) (Rs.)
etc.
(Rs)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Total
(*) To be written in order of priority & rotation plan as decided in SHG meeting

Page 6 of 19
INTER-SE AGREEMENT TO BE EXECUTED BY THE MEMBERS OF THE SELF HELP
GROUP

THIS AGREEMENT made on this ____________day of ___________20____BETWEEN

Sl Members Name Name of Father/ Gender Age

no Husband (Male /Female)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

who are members of the ___________________________________ group, hereinafter referred to

collectively as "The Self Help Group (SHG) Members" which expression shall, unless repugnant to
the context or meaning, include every members of the said SHG and their respective legal heirs,
executors and administrators.

WHEREAS all SHG members are residents of ______________________________ Village/

City……………………..in________________________ Block of …………….. District of
…………………State and are known to each other.
WHEREAS the SHG members above named have joined voluntarily together and formed the SHG
with intent to carry on savings and credit and other economic activities for mutual benefit subject to
the terms and conditions hereinafter appearing:

NOW THEREFORE THIS AGREEMENT WITNESSETH THAT :-

1. Each member of the SHG shall save a sum of Rs. _________________________________
(Rupees_______________________ only) or such sum as may be decided by the Group, on
(weekly fortnightly/monthly) basis during the scheduled SHG meeting. The accumulated
corpus of the SHG shall be given on loan to members based on their need and recovered
along with interest as decided by the SHG members.
Page 7 of 19
2. The SHG will take the responsibility for maintaining appropriate books of accounts to ensure
transparency in transaction among SHG members

3. Each member shall strive for the success of the SHG and shall not act in any manner
detrimental to the business interests of the SHG.

4. The SHG members shall be jointly and severally liable for all the debts contracted by the
SHG.

5. All assets and goods acquired by the SHG shall be in the joint ownership of all the members
of the SHG and shall ordinarily be in the constructive custody of such member as may be
authorized by the Group and shall be kept at the place of business at________________
which shall not be changed without consent of the SHG members.

6. The SHG members hereby duly elect and appoint

Shri/Smt/Kum.____________________________________ as _____________________,
Shri/Smt/Kum ____________________________________ as___________________
Shri/Smt/Kum _____________________________________as___________________
to look after and manage the day to day affairs of the SHG's activities and also act in the
name of the SHG in all matters relating thereto. The authorized representatives, may
however, be removed at any time by majority vote of the members and new representatives
elected.

10. Each of the SHG members hereby agrees to abide by and ratify all such act, deeds and
things as the authorized representatives may do in the interest of the said activities.

11. The authorized representatives shall take decisions in the day to day working of the SHG and
each representative shall actively involve herself and co-operate in looking after the day-to-
day affairs of the SHG activities in particular to attend to the following activities.
- Every member of the SHG hereby authorizes the representatives to apply for the loan on
behalf of the SHG and execute necessary agreements/documents on behalf of the SHG for
the purpose. The authorized representative may collect loan amounts from the bank on
behalf of SHG, deposit the same in the savings account of the SHG in case of Term Loans
for on-lending to members in accordance with the decision of the SHG and also deposit
recovery of loan installment from members in the loan account/s of SHG with the bank.

12. The SHG members hereby specifically authorize the representatives:-

i. To open Savings, Fixed Deposits and other accounts in
.........................................Branch of…………………………………. Bank approved by
the SHG and operate the same under the joint signature of any two of the following
authorized representatives:
Shri/Smt/Kum_________________________________________________________
Shri/Smt/Kum__________________________________________________________
Shri/Smt/Kum__________________________________________________________
ii. To keep or cause to be kept proper books of accounts of the savings, made by the
SHG Members, loans granted to them and the recoveries made from them and render
every year the full accounts to the SHG members for their approval and adoption;
iii. To receive all payments due to the SHG and issue requisite receipts or
acknowledgments for and on behalf of the SHG;
iv. To institute and defend on behalf of the SHG members any legal proceedings and
safeguard the interests of each member of the said SHG and for this purpose engage
or disengage any lawyer or advocate or agent and incur the necessary legal expenses
in connection therewith.
Page 8 of 19
 13. In the event of death of any of the members of the SHG, his/her legal heirs shall be entitled
or the benefits and be liable for the obligations of the deceased member under this
agreement.

14. It is agreed that no new person shall be inducted as a member of the SHG without consent of
all the existing members.

IN WITNESS WHEREOF the aforesaid members of the SHG have set their respective hands
hereunto at the place __________________ and on _______________ day of _____________
month ___________ year first herein appearing.

S.N. Name of member of the SHG Signature/s/Thumb of the impression

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

WITNESSES:-

1.
2.
(Note: The SHG shall not consist more than 20 persons).

Page 9 of 19
 Financial Statement of ………………………………....(name of SHG) as on ………(date)

Liabilities Assets
Particulars Amount Particulars Amount
Outstanding C/C of Bank Cash in hand
Outstanding T/L of Bank Deposit with Bank
Outstanding loan of
Deposit with Federation
VO/Federation
Loan outstanding from
Savings of members
members
Other Liabilities Other Assets
(Specify……………………………) (Specify …………..……….)
Surplus
Total Total
Details of Corpus

Particulars Amount (Rs)

Total Savings of members:
Total interest and other incomes:
Revolving Fund/ Grant Assistance received from
project/ department/ other agencies
Other Receipts (Specify
…………………………………..)

Total

(Amount in Words ……………………………………………………………………………….)

We certify that the above statement is true and can be verified from the books of accounts maintained by our
Self Help Group.

Signature Signature Signature

(Designation ……………….) (Designation ……………….) (Designation ……………….)

Seal of Self Help Group

Page 10 of 19
 Format 1: SHG Grading format for Fresh Linkage( Term loan and CCL/DL)
A. Basic Information:-

Name of the SHG:

Village: ………………Gram Panchayat:……………Block:………………District:…………………
Date of formation of the SHG:…….……………..Date of opening of Bank S/B A/C:………………..
Period considered for Grading: From…………………to…………………….
(Usually last 6 months)

B. Details of Grading /Evaluation Exercise:

S.N. Indicator Allotte Formula for determining Marks Marks
d obtained
Marks
1 Regularity of Meeting:
(a) Regularity of holding No. of meetings held X10
10
meetings by SHG No. of meetings required to be held as per rule of SHG
(b) Regularity of Attendance of Average no. of members attended the meetings X10
10
members in the meetings Total no. of members of the SHG
2 Regularity of Savings by Amount of savings deposited by the members X 10
10
members Amount of savings required to be deposited as per rule of SHG
3 *Velocity of Lending to More than 1.5 :- 20
members from Group Corpus More than 1.0 up to 1.5:- 15
20 More than 0.5 up to 1.0:- 10
More than 0.2 up to 0.5:- 5
Up to 0.2:- 0
4 Regularity in Repayment of Amount of recovery against Demand X 20
20
loan by members Amount of Demand (required to be paid as per repayment schedule)
5 Updated Record keeping:
a) Resolution Book 4
b) Cash Book 8 Maintained up to date :- Full marks
c) Savings Ledger 4 Maintained , but not up to date:- Half Marks
d) Loan Ledger 4 Not maintained:- 0 (no Mark)
e) General Ledger 6
f) Individual Pass Book 4
Total 100
*Velocity of lending from Group Corpus= Amount lent to the members from Group Corpus
Average amount of Group Corpus

 A Grade: 80 or more marks

 B Grade: 70-79 marks
 C Grade: 60-69 marks
 D Grade: less than 60 marks

Only A & B graded SHGs are to be considered for credit linkage

Page 11 of 19
 Format 2: SHG Grading format for Repeat Linkage (Cash Creedit/Demand Loan)
A. Basic Information:-
Name of the SHG:
Village: ………………Gram Panchayat:……………Block:………………District:…………………
Date of formation of the SHG:…….……………..
Date of first/previous credit linkage -----------------------and Loan A/C No :………………..
Period considered for Grading: From…………………to…………………….
(Usually last12 months)
B. Details of Grading /Evaluation Exercise:
S.N. Indicator Allotted Formula for determining Marks Marks
Marks obtained
1 Regularity of Meeting:
(a) Regularity of holding meetings No. of meetings held X10
5
by SHG No. of meetings required to be held as per rule of SHG
(b) Regularity of Attendance of Average no. of members attended the meetings X10
members in the meetings 5 Total no. of members of the SHG
2 Regularity of Savings by Amount of savings deposited by the members X 10
10
members Amount of savings required to be deposited as per rule of SHG
3 *Velocity of Lending to More than 1.5 : 10
members from Group Corpus More than 1.0 up to 1.5 - 7
10 More than 0.5 up to 1.0: 5
More than 0.2 up to 0.5: 2
Up to 02: 0
4 Regularity in Repayment of Amount of recovery against Demand X 10
loan by members 10 Amount of Demand (required to be paid as per repayment
schedule)
5 Updated Record keeping:
a) Meeting Resolution Book 2
b) Cash Book 2
c) Savings Ledger 2 Maintained up to date :- Full marks
d) Loan Ledger 2 Maintained , but not up to date:- Half Marks
e) Individual Pass Book 2 Not maintained:- 0 (no Mark)
f) Total 10
Operations in Cash Credit A/c and Credit history:
a) Number of transactions in last i) 12 or more:- 20
12 months ( Debits other than 20 ii) 6 to less than 11 :- 10
interest + Credits) ii) Less than 6 :- 5
b) No of months (during last 12 i) All 12 months :- 20
6 months)in which interest served 20 ii) 6 to 11 months:- 10
on time iii) Less than 6 months:- 5
c) Occasions of overdrawing
i) Never :- 10
inCC A/c due to charging of
10 ii) On 2 occasions :- 5
interest etc. during last 12
months iii) On more than 2 occasions :- 0
Total 100
*Velocity of lending from Group Corpus= Amount lent to the members from Group Corpus
Average amount of Group Corpus
 A Grade: 80 or more marks
 B Grade: 70-79 marks
 C Grade: 60-69 marks
 D Grade: less than 60 marks

Only A & B graded SHGs are to be considered for enhancement of CC/DL limit

Page 12 of 19
 Format 2: SHG Grading format for Repeat Linkage (Term Loan)
C. Basic Information:-
Name of the SHG:
Village: ………………Gram Panchayat:……………Block:………………District:…………………
Date of formation of the SHG:…….……………..
Date of First credit linkage -----------------------and Loan A/C No :………………..
Period considered for Grading: From…………………to…………………….
(Usually last 12 months)
D. Details of Grading /Evaluation Exercise:
S.N. Indicator Allotted Formula for determining Marks Marks
Marks obtained
1 Regularity of Meeting:
(a) Regularity of holding meetings No. of meetings held X10
5
by SHG No. of meetings required to be held as per rule of SHG
(b) Regularity of Attendance of Average no. of members attended the meetings X10
members in the meetings 5 Total no. of members of the SHG
2 Regularity of Savings by Amount of savings deposited by the members X 10
10
members Amount of savings required to be deposited as per rule of SHG
3 *Velocity of Lending to More than 1.5 : 10
members from Group Corpus More than 1.0 up to 1.5 - 7
10 More than 0.5 up to 1.0: 5
More than 0.2 up to 0.5: 2
Up to 02: 0
4 Regularity in Repayment of Amount of recovery against Demand X 20
loan by members 10 Amount of Demand (required to be paid as per repayment
schedule)
5 Updated Record keeping:
a) Meeting Resolution Book 2
b) Cash Book 2
c) Savings Ledger 2 Maintained up to date :- Full marks
d) Loan Ledger 2 Maintained , but not up to date:- Half Marks
e) Individual Pass Book 2 Not maintained:- 0 (no Mark)
f) Total 10
Operations in Term Loan A/c and Credit history:
i) All due installments on time :- 25
ii) Paid 75% of due installments on time:-
a) Repayment of Term Loan in
15
last 12 months 25
iii) Paid less than 50% of due
6 5
installmentsontime:-
c) Occasions of overdues in
i) Never :- 25
Term Loan A/c due to charging
25 ii) On 3 occasions :- 15
of interest etc. and not timely
repaid during last 6 months iii) On less than 3 occassions :- 5
Total 100
*Velocity of lending from Group Corpus= Amount lent to the members from Group Corpus
Average amount of Group Corpus
 A Grade: 80 or more marks
 B Grade: 70-79 marks
 C Grade: 60-69 marks
 D Grade: less than 60 marks

Only A & B graded SHGs are to be considered for enhancement/sanction of next dose of term loan

Page 13 of 19
 Branch Office

ARTICLES OF LOAN AGREEMENT FOR USE BY BANKS WHILE

FINANCING SELF-HELP GROUPS
The Articles of Agreement made on this ____ day of ____________20__ at ____________ By and
Between M/s _______________________________________ [name of the SHG] an unregistered
association of persons/individuals having its office at
___________________________________________________________________________
represented by its authorized representative
Shri/Smt._______________________________(Name)__________________(Designation);
Shri/Smt._______________________________(Name)__________________(Designation) and
Shri/Smt._______________________________(Name)__________________(Designation, who are
fully authorized by all the members of the SHG, ( a copy of such Authorization is
annexed hereto and forms part of this agreement), hereinafter referred to as the "Borrower" which
expression shall unless repugnant to the subject or context thereof, mean and include members of
the unregistered association for the time being, their respective successors, legal heirs,
administrators and assigns of the one part and _______________________________ (name of the
Bank) a body corporate constituted under the _______________________________Act, having its
Head Office at _________________ and the Branches, inter-alia, one
at________________________________ here in after called "the Bank" which expression shall
unless repugnant to the subject or context thereof mean and include its successors and assignees of
the second part.
Whereas the borrower is an unregistered association of persons who have inter-se agreed to help
each other as self-help group with a view to developing and ameliorating the socio-economic
conditions of their members.
Whereas having formed the association as a Self Help Group, the Borrower as per application
dated ________________ made by the said
Shri/Smt._______________________________(Name)__________________(Designation);
Shri/Smt._______________________________(Name)__________________(Designation) and
Shri/Smt._______________________________(Name)__________________(Designation, duly
authorized to borrow in terms of its resolution dated ___________________[copy
enclosed] requested the Bank to *grant a Term Loan/extend Cash Credit facility* of
Rs.___________________/- up to the limit of Rs. _____________/-
(Rupees_______________________________________ only) for on-lending to its members.
And whereas the Bank has agreed to grant the * Term Loan /extend Cash Credit facility* to the
borrower on certain terms and conditions.(* deleted whichever is not applicable)
And whereas the Bank and the borrower are desirous of reducing the agreed terms into writing.
Now, therefore, this agreement witnesses as follows:

1. The Bank has agreed to grant and the borrower has agreed to borrow by way of Term Loan
Cash / Credit (clean) up to the limit of Rs. ____________/- (Rupees ________________-only)
and the Bank has opened (SPECIFY THE KIND OF LOAN ACCOUNT)_________________
A/C No._______________________________ of date __________________- in the name of
the Borrower in its book of accounts.

Page 14 of 19
 2. *In case the facility availed is Cash Credit the Borrowers will operate the Cash Credit account
satisfactorily and within the limit and the Borrower shall repay the interest charged in the Cash
Credit account from time to time or on demand without demur.

3. *In case loan availed is Demand Loan, without prejudice to the right of the Bank to recall the
loan on demand the Borrower undertakes to repay the loan with interest and other within the
period stipulated in terms of sanction.

4. *In case the credit facility availed of by the borrower is a Term Loan the same shall be
repayable in installments in the manner specified herein-below in the repayment schedule. (to
be specified) Besides the borrower will pay interest at the rates that may be prescribed for
such lending by RBI/NABARD from time to time.
(*Delete whichever is not applicable)

5. It is clearly understood by and between the parties hereto that in the event of the borrower's
failure to utilize the proceeds of the credit facility for the purpose for which the same has been
made available by the bank to the borrower, the borrower shall repay immediately on demand
without demur together with interest without prejudice to Bank's right to initiate other legal
action.

6. The borrower shall pay interest on the loans to be calculated on the daily balances in the loan
account and be debited thereto at monthly/quarterly rests or as the Bank may decide.

7. The borrower should utilize the proceeds of the credit facility for the purpose of lending to is
members to improve the socio-economic conditions of their members and their families. That
the loan will not be used for any Speculative purpose / activities prohibited by law.

8. The borrower shall repay the Term Loan facility availed of together with interest payable as
per the interest rates that may be fixed by bank from time to time for such lending

9. The borrower shall be liable to repay the facility on demand together with the interest and
other charges payable by the borrower to the bank in accordance with the rules of the Bank.

REPAYMENT SCHEDULE:
For Term Loan:
Principal loan is to be repaid in ………..equal monthly / quarterly / half-yearly installments. Interest
debited to the A/C is to be repaid / deposited promptly.
or
Principal loan alongwith interest is to be repaid in ------- equal monthly/quarterlyhalf yearly
installments over a period of -------- months/years.

In witness where of the parties hereto have affixed their signature on the ______________date and
the ______________ month and _____________ year first herein above written.

1) FOR THE BORROWER- SHG 2) FOR THE BANK

1.
2.
3.
[Signature of Authorized representatives [Signature of Authorized representative (Office bearers) with
office seal] (Branch Manager) with office seal

Page 15 of 19
 DEMAND PROMISSORY NOTE FOR USE BY BANKS WHILE FINANCING
Cash Credit/Demand Loan limits to SELF-HELP GROUPS

Place……………………………
Date:…………………………..
Rs…………………………………

On demand we ………………….(name of the SHG) and the members jointly and severally promise to
pay.……………………….. Bank or order at ………………………………………………………………….
the sum of Rupees………………………………………………………………………………………with
interest thereon at the rate of …………….percent per annum -----(below / above/ at) EBLR/ MCLR /
Lending Rate of the Bank which is at present ……………………% per annum with
…………………………………rests for value received.

Revenue
stamp

[Signature of Authorized representatives of SHG with office seal]

Name of SHG:

Address of the SHG:

Street ……………………….Village/ City…………………….Gram Panchyat……………….

Block ………………………..District…………………………..Pin………………………..

Page 16 of 19
 Appraisal Note cum Sanction Order of Bank Branch for financing Self-
Help-Group:
* Credit Linkage (CC / DL/TL) / *Renewal of CC limit /*Enhancement of CC limit / *Repeat TL
(*Strike out which is not applicable)

Basic Details of SHG

1. Name of the Bank:……………………………………………………………………….
2. Name of the Branch:……………………………………………………………………..
3. Name of the Processing / Inspecting Loan Officer:……………………………………
4. Date of Processing/Inspection:…………………………………………………………..
5. Name of the SHG:…………………………………………………………………………
6. Address of the SHG:………………………………………………………………………
7. Date of formation of the SHG:……………………………………………………………
8. No. of members in SHG:…………………………………………………………………
9. Facilitating Agency (if any):………………………………………………………………
10. S/B A/C No………………………………………………………………………………..
11. CC A/C No. (in case of already CC-linked SHG):……………………………………..

Assessment of SHG
1. Whether the SHG has completed 6 months from the date of formation / 12 months from the date
of last sanction: Yes / No (*Strike out which is not applicable)

2. Whether the SHG has been Graded /Evaluated: Yes / No (*Strike out which is not applicable)

3. Whether the SHG has passed the Grading / Evaluation Exercise: Yes / No (*Strike out which is
not applicable

4. % of Marks obtained in the Grading / Evaluation Exercise:…….

5. Financial position of the SHG( as on ………………..):

Liabilities Assets
Particulars Amount Particulars Amount
Outstanding C/C of Bank Cash in hand
Outstanding T/L of Bank Deposit with Bank
Outstanding loan of
Deposit with Federation
VO/Federation
Loan outstanding from
Savings of members
members
Other Liabilities Other Assets
(Specify……………………………) (Specify …………..……….)
Surplus
Total Total

Existing Corpus of SHG =Rs …………………………………………[ Total Assets – Outstanding loans (if any)]

Page 17 of 19
Assessment of eligibility CC/DL Limit / TL to be sanctioned to the SHG:

No. of dose Eligibility Eligible Amount Amount Proposed

of credit * (As per RBI guidelines) to be Sanctioned
Fresh a) Existing Corpus = Rs ……….. 6 times of total Corpus or Rs …………………
st
Linkage (1 b) Proposed savings for remaining minimum Rs 1,00,000 whichever
dose) part of the year = Rs………… is higher
Total Corpus = Rs …………[(a) + (b)]
nd
2 Dose a) Existing Corpus = Rs ……….. 8 times of total Corpus or Rs …………………
b) Proposed savings for next 12 minimum Rs 2,00,000 whichever
months = Rs………… is higher
Total Corpus = Rs …………[(a) + (b)]
rd
3 Dose Minimum Rs 6,00,000 or as per Rs …………………
Micro Credit Plan
th
4 Dose More than Rs. 6,00,000 or as per Rs …………………
Micro Credit Plan
(*Strike out which is not applicable)

Terms of Sanction:

Sanctioned a new Cash Credit limit / Renewed / Enhanced the existing Cash Credit limit
Rs…………………Rupees……………………………………….only ) under the following terms & conditions:-
or

Sanctioned a Term Loan / Renewed / of Rs…………………Rupees……………………………………….only )

under the following terms & conditions

(a) Documents to be obtained for Term Loan:

i. Inter-se agreement
ii. Articles of loan agreement
(b) Documents to be obtained for Cash Credit/Demand Loan:
i. Inter-se agreement
ii. Demand Promisory Note
iii. Articles of Agreement

(c) Purpose of the credit facility: On-lending to the members of the SHG

(d) Rate of interest: ……..% p.a.to be calculated on reducing balance method with monthly rest or
-------% p.a. upto Rs. 3 lakhs and @----- p.a.on rest amount over Rs. 3 lakhs . The SHG will be
eligible to get the benefit of interest subsidy if it fulfil the norms as specified by Government in
this regard.

(e) Service charge: As per guidelines for PSL for weeker sections. (Loan to SHG is treated as
advance to weaker section).

(f) Repayment:

For Term Loan:

1. Principal loan is to be repaid in …………….equal monthly / quarterly / half-

yearly instalments of Rs. ----------. Interest debited to the A/C is to be repaid /
deposited promptly.
Or
2. Principal loan alongwith interest is to be repaid in ------- equal
monthly/quarterlyhalf yearly installments of Rs. ------------over a period of ------
-- months/years.
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(g) Review / Evaluation of the C/C A/C will be done after 12 months.

……………………………. ……………………………..

Signature of the Processing / Appraising Officer Signature of the Branch Manager

Date:- (With Office Seal)

Date:-

We, on behalf of ……………………………………………SHG hereby accept the aforesaid terms

& conditions of the above-noted CC facility / Term loam sanctioned to our SHG by the above-
mentioned Bank Branch.

1.
2.
3.

[Signature of Authorized representatives of the SHG with office seal]

Date:
Place:

Page 19 of 19