Particulars

Details

Eligibility

SHGs with a good track record / repayment, which is in existence for more than 2 years

Who can join the scheme?

SHG members who are desirous of availing the loan may join the scheme and start saving through a RD or SB in the name of the group for a period of six months. This saving is apart from the regular SHG savings. If the saving is in the form of RD, it can be extended if the group so desires for availing the education loans subsequently also.

Maximum Loan

ü      The loan is made available to the group in multiples of accumulated savings subject to maximum of six times at any time of the year depending upon educational requirements of the wards of the SHG members. This loan is apart from the regular SHG loan.

ü      The branch need not insist the SHGs to block the thrift so saved either in their SB / Term Deposit, since the loans are entertained only in case of well stabilised groups.

Repayment

Repayment is over a period of 12 – 24 months, depending on cash flow and the wisdom of the group.

Multiple Loans

There need not be any restrictions on the number of Vidhya Shobha loans per group. It may only be ensured that at the time of availing a fresh Vidhya Shobha loan, all the other loan accounts of the SHG are regular.

On lending

The group in turn will on-lend to the members who opted for the scheme based on their accumulated savings in the SB / RD opened in the name of the group for this scheme.

Rate of Interest

Up to   Rs.50,000/- BPLR less 2.50% (10.00%)

Above Rs.50,000/-  BPLR less 2.25% (10.25%)

Margin

NIL

Processing Fees

As per existing guidelines