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.
