SBI Agriculture Loan For Micro Finance Institutions (MFI) or Non Govt. Organisations (NGO)

The objective of SBI agriculture loan scheme For Financing Micro Finance Institutions (MFI) or Non Govt. Organisations (NGO) is to enable the Bank to lend to MFI / NGO for on lending to SHG / JLG Individuals and to increase the outreach by financing large number of SHG in cost effective manner, supplementing the efforts of in financing SHG.

Eligibility for MFI / NGO Agriculture Loan

NGO/ MFI should any one - Regd Society / Regd Trust / Regd Company / NBFC or any Institution engaged in micro-finance. NGO/ MFI having minimum partnership of SHG / JLG - 50 and individuals - 500. In cluster financing min membership of Federation should be 30 SHG. Existing for last 12 months and running micro credit programme for last 6 months, continuous profit making, maintains a satisfactory & transparent accounting, MIS and Internal Audit System, not be defaulter, having risk portfolio less than 5% etc.

Terms and Conditions for MFI / NGO Agriculture Loan

Rating: Loan below Rs 200 lacs - Specific Scoring model - min 60 marks. Loans above Rs. 200 lacs - Rs 500 lacs- Valid Credit Ratings by any Micro Credit Rating Agencies. Loans above Rs. 500 lacs- Rating from RBI approved agencies its guidelines for implementation of New Capital Adequacy Framework (NCAF).

Facility: MTL or CC. Margin: Nil.

TOL / TNW: Maximum permissible TOL / TNW to be 5.

Rate of Interest: Charged by Bank – linked with SBAR. To be charged by NGO/ MFI - freedom to decide reasonable rate, which is also a part of document. Any charge to be quoted by MFI/ NGO will also be part of agreement.

Repayment: TL - Monthly/ Quarterly/ HY installments on the basis of project/ purpose, max 3 yrs. CC - renewal annually.

Security: Primary - Hypo of Book debts, Collateral: Nil, however, Gurantee of Promoters and charge over available assets to be explored.

Sanctioning Authority: Not below AGM.