GROUP LOAN

SHG Group Loan – Terms & Conditions

Eligibility

The loan shall be granted to the Self Help Group (SHG) as a collective unit consisting of active members who regularly participate in group meetings and savings activities.

Loan Approval

The loan amount shall be approved by the SHG through group resolution and mutual consent of all members.

Loan Amount

The sanctioned loan amount shall be distributed among the SHG members based on their requirements and group approval.

Interest Rate

The loan shall carry an interest rate as agreed by the SHG or the lending institution and communicated to all members.

Repayment Responsibility

All SHG members shall be jointly and severally responsible for the repayment of the loan, including principal and interest.

Repayment Schedule

The SHG shall repay the loan as per the agreed schedule (weekly/monthly installments) without delay.

Utilization of Loan

The loan amount shall be utilized only for productive or approved purposes decided by the group.

Default or Delay

In case of delay or default by any member, the SHG group shall ensure repayment to the lender as per the agreed terms.

Record Maintenance

All loan transactions, repayments, and interest calculations shall be properly recorded in the SHG account books and loan registers.

Penalty for Delay

Late payment or violation of loan terms may attract penalties as per SHG rules or lender guidelines.

Prepayment

The SHG may repay the loan earlier than the scheduled period without penalty, subject to lender approval.

Dispute Resolution

Any disputes related to the loan shall be resolved by the SHG committee or through mutual discussion among members.