SHG provides loans to its clients
- SHG FINANCE PLC offers loans to its clients in order to help them start an enterprise or to strengthen an existing one.
- SHG FINANCE PLC shall provide collateral free loans to SHGs/members
- SHG FINANCE PLC shall provide loans for legally permitted activities
The detail of loan product that is currently offered by SHG FINANCE PLC is furnished below:
Rate of Interest
- The rate of interest charged on all loans will be 24% per annum on reducing balances at monthly rests.
There will be no penal interest on the delayed payments
- Loan processing fee of 1% of the loan amount.
- There will no prepayment charges in case of early repayment or on pre closure of loans.
- No change in the rate of interest/charges will be made with retrospective effect.
Other terms and conditions
- For the first batch of loan, a maximum of 75% of members in an SHG can avail loans from SHG FINANCE PLC. In case of the SHG consisting of odd number of members, for example 17, then the SHG can avail loan for 13 members in the first batch and the remaining 4 members can obtain the loan in the subsequent batch.
- The SHG that received loan from SHG FINANCE PLC for 75% of its members in the first batch can avail another loan for the remaining 25% of the members after on time repayment of two instalments of the loan availed by the first batch of loanees.