SBI Microfinance

I want to get the details of Scheme For Financing Micro Finance Institutions of State Bank of India SBI so can you please provide me?

[Shaleen]

State Bank of India is an Indian multinational, public sector banking and financial services company. It is a government-owned corporation with its headquarters in Mumbai, Maharashtra. The bank was established on 2 June 1806.

Scheme For Financing Micro Finance Institutions (MFIS) / Non Government Organisations (NGOS)

Purpose-

Routing micro credit through NGOs / MFIs functioning as financial intermediaries

With the ultimate aim of increasing the outreach by financing large number of Self Help Groups.

Eligibility-

The NGO / MFI, will have to be of any one of the following-

Trusts registered under Public Trust Act, 1920 or similar Act.
Companies registered under Companies Act, 1956 including Section 25 companies.

Societies registered under Societies Registration Act, 1960 or similar State Act.

Non Banking Financial Companies providing financial services to SHGs which satisfy the following criteria as laid down by RBI may only be taken up for financing:

Engaged in micro financing activities

Licensed under section 25 of the Companies Act, 1956, which are not accepting public deposits from the purview of sections 45-IA(Registration), 45-IB (maintenance of liquid assets) and 45-IC (transfer of profits to Reserve Fund) of the RBI Act, 1934.

Specialist and other Co-operatives such as Mutually Aided Co-operative Societies, etc

Any other type of institution that offers micro finance and related services may be considered on merits.

Loan amount-

Need-based repeat finance

Requirement of finance to be worked out based on the health of the NGO / MFI and the business plan as per the appraisal format

Security

Hypothecation of Book Debts of the NGOs / MFIs And personal guarantee of the Promoters / Directors and charge over other available assets

How to repay the loan?

Term loans are repayable in : monthly / quarterly / half-yearly.

Instalments depending on the project / purpose

However, total repayment period should not exceed 3 years.

Cash credit loans are to be renewed annually

How to apply for this loan?

You may contact their nearest branch or even talk to the marketing officers visiting your village