INDIVIDUAL LOAN

SHG Individual Loan – Terms & Conditions

Eligibility

The loan shall be provided only to an active member of the Self Help Group (SHG) who has regularly participated in group meetings and savings activities.

Loan Amount

The loan amount will be decided and approved by the SHG group committee based on the member’s need, repayment capacity, and group consensus.

Interest Rate

The loan shall carry an interest rate as decided by the SHG and communicated to the borrower before disbursement.

Repayment Period

The borrower shall repay the loan amount along with interest within the agreed repayment schedule (weekly/monthly installments).

Use of Loan

The loan must be used only for the purpose stated in the loan application and approved by the SHG.

Late Payment

Delay in repayment may attract penalty charges as decided by the SHG group rules.

Group Responsibility

In case of default, the SHG group may take appropriate action as per group policies and mutual agreement.

Prepayment

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

Record Maintenance

All loan transactions shall be recorded in the SHG loan register and acknowledged by both the borrower and group representative.

Dispute Resolution

Any dispute arising from this loan shall be resolved internally by the SHG committee as per group norms.