[PPT]PowerPoint Presentation - Welcome to National Rural...

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NATIONAL RURAL LIVELIHOOD MISSION (NRLM) 03 February 2015, Chennai

Transcript of [PPT]PowerPoint Presentation - Welcome to National Rural...

NATIONAL RURAL LIVELIHOOD MISSION (NRLM)

03 February 2015, Chennai

Implementation arrangements under NRLM

Block Mission Management Unit (BMMU)/ Project Facilitation Teams

(PFT)

District Mission Management Unit

(DMMU)

State Mission Management Unit

(SMMU)

6 – 20 member teamwith thematic specializations

6-8 member team responsible for

programme implementation at

District level

5 member team responsible for

programme implementation at

Block level

8-10 Community Cadres at each Cluster

(28-40 Gram Panchayats)

State Missions – Dedicated manpower

Consultation mechanism with banks

• Central Level Coordination Committee (CLCC)

• IBA sub committee at the national level

• NRLM Sub-committee under SLBC

• NRLM Sub-committee under DCC

• BLBC with participation of community

representatives

SHGs SHGs SHGsSHGs SHGs SHGs

V.O

(15 – 25 SHGs)

Self Help Groups (10 -15 members)

(250 – 300 SHGs)

CLF

SHGBook Keeper

• VO Book Keeper• Community Facilitator

• CLF Accountant• Bank Mitra

Community Institution Architecture

SHG Monitoring Sub Committee Bank Linkage Sub committee

Asset Verification Sub Committee Social Action Sub Committee

Monitoring Sub Committee Repayment Sub committee

Convergence Sub Committee

Bank Linkage Mandate under NRLM

“Each poor Household is able to access credit of at least Rs 1 lakh in multiple

doses (over 4-5 years)”

Internal Lending

SB A/C opening

RFMCP prepared

CIFBank Credit – 1st Linkage

Bank Credit – 2nd Linkage3-4

Months

36-40 Months

2 Months

6 -12 Months

From 1st Meeting

SHG Capitalization Strategy

24 -30 Months

6-8 Months

6-8 Months

Bank Credit – 3rd Linkage

RF : Revolving FundMCP: Micro Credit PlanCIF: Community Investment Fund

Step by step process

VILLAGE FEDERATION

SHG

Four Banks for poor

CLUSTER FEDERATION

BANK

• Revolving Fund (RF): RF support to SHGs which are active for a minimum period of 3/6 months and ‘Panchasutra’ - Rs 10000 – Rs 15000 per SHG

• Community Investment support Fund (CIF) : CIF will be provided to the SHGs in the intensive blocks, routed through the Village level/ Cluster level Federations

• Capital Subsidy has been discontinued under NRLM

MASTER CIRCULAR ON NRLM -Key points

Lending Norms

Eligibility criteria for the SHGs

• SHG should be in active existence at least 6 months & following ‘Panchasutra’.

• Revived SHGs are also eligible for credit if they are continue to be active for a minimum period of 3 months.

• Grading as per norms fixed by NABARD. As and when the Federations of the SHGs come to existence, the grading exercise can be done by the Federations to support the Banks.

Loan amount

• First dose: Rs. 50,000 or 4-8 times the corpus during the year whichever is higher.

• Second dose: Rs. 1 lakhs or 5- 10 times the existing corpus and proposed saving during the next twelve months, whichever is higher.

• Third dose: Minimum of Rs. 2 lakhs, based on the MCP prepared by the SHGs and appraised by the Federations/Support agency

• Fourth dose onwards: Loan amount can be between Rs. 5-10 lakhs for fourth dose and/or higher in subsequent doses. The loan amount will be based on the MCP

Type of facility and repayment

• SHGs can avail either Term loan or a CCL loan or both based on the need.

Repayment schedule could be as follows

• First dose: 6-12 installments • Second dose: 12-24 installments • Third dose - based on MCP - repayment either

monthly/quarterly /half yearly based on the cash flow (2 to 5 Years)

• Fourth dose onwards: repayment has to be either monthly/quarterly /half yearly based on the cash flow (3 to 6 Years)

Security and MarginNo collateral and no margin will be charged upto Rs. 10.00 lakhs limit to the SHGs

INTEREST SUBVENTION TO

SELF HELP GROUPS

Interest Subvention scheme – Credit limit Rs 3 lakhsParameter Category-I districts Category-II districts

1 Coverage Limited to selected 150 districts Remaining 490 districts

2 Eligibility All women SHGS are eligible for IS NRLM compliant women SHGs are eligible for IS

3Benefit & eligibility Condition

SHGs will be eligible for loans from banks at upfront 7% per annum;

In case of prompt repayment additional 3% IS. Thus effective interest rate is 4% .

IS available on prompt repayment only

IS will be equivalent to the difference between lending rate of banks and 7% per annum

4 Release mehanism Banks will be subvented

SHGs will be subvented Difference between the

bank's lending rate and 7% (subjected to a max. of 5.5%)

5 Nodal Agency Canara Bank for PSBs & Pvt Banks NABARD for RRBs & Cooperative

BanksRespective SRLM

Role of Banks • Banks will lend to all women SHGs at upfront 7% per annum

(upto Rs 3 lakhs)• Banks will also pay additional interest subvention of 3% to SHG

loans accounts being serviced promptly• Bank will submit claims pertaining to interest subvention to

Canara Bank for further submission to MoRD for release of claims.

Role of MoRD & SRLMs• MoRD will subvent banks to as per DFS approved rate -

Weighted Average Interest Charged (WAIC)• SRLMs will undertake initiatives for spreading on the scheme

Interest Subvention Cat. – I (150 districts)

Weighted Average Interest Cost (WAIC)As prescribed by DFS

Banks WAIC Interest to be subvented above 7%

HDFC Bank 18.00 5.5ICICI Bank 14.26 5.5Yes Bank 20.50 5.5Axis Bank 12.68 5.5J&K Bank 13.00 5.5Karur Vysy Bank 11.28 4.28Dhanalaxmi Bank 13.00 5.5Ratnakar Bank 18.00 5.5South Indian Bank 14.50 5.5Federal Bank 12.70 5.5ING Vysy Bank 19.05 5.5Indus Ind Bank No lending to WSHG NAKotak Mahindra Bank No lending to WSHG NATamil Nadu Mecantile Bank No lending to WSHG NA

Role of Banks

• Banks will lend to women SHGs at regular lending rates• Banks to regularly share data with NRLM on loans disbursed

to women SHGs directly from CB

Role of State Missions• State Missions will identify ‘NRLM Compliant SHGs’• Based on the data shared by banks, promptly repaying SHGs will

be identified.• State Missions will transfer the amount of interest subvention

directly to SHG loan a/c.

Interest Subvention Cat. – II (490 districts)

SHG Bank LinkageHow are Private Banks performing?

Share in Credit disbursement to SHGs (FY13-14)

59%8%

26%

7%

Public Sector Banks Private Sector BanksRegional Rural Bank Cooperative Bank

Region-wise penetration by Pvt Banks (2013-14)

4.67%12.58%

1.21%

81.54%

Northern Region Western Region Central Region Southern Region

Growth in disbursement of loan by Pvt Banks

2011-12 2012-13 2013-140

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

0

500

1000

1500

2000

2500

29557

69843

87976

546.78

1293.33

1923.62

Loan

Am

ount

(Rs C

r)

No.

of S

HG L

inke

d

No. of SHG LinkedLoan Amount

Average loan Size to SHGs

2011-12 2012-13 2013-14160000

170000

180000

190000

200000

210000

220000

230000

184991 185176

218652

Amou

nt o

f Cre

dit P

er S

HG (R

s)

S.No. States Estimated no of SHGs

No. of SHGs having Loan

o/s(Mar 2014)

% of SHG having loan outstanding

Share of Pvt Banks

1 TAMIL NADU 6,36,000 4,46,671 70% 10%2 KARNATAKA 5,00,000 3,37,196 67% 6%3 RAJASTHAN 2,31,763 1,29,830 56% 8%4 KERALA 2,29,964 1,17,303 51% 18%5 MP 1,59,457 81,030 51% 6%6 MAHARASHTRA 6,87,717 2,04,355 30% 12%7 GUJARAT 2,08,410 61,848 30% 3%

Total 26,53,311 13,78,233

SHGs Bank Linked

Source: Status of Microfinance 2013-14, NABARD

SRLM- Promotion of SHG & Fedn- Capacity Building of CBOs- Financial literacy, counselling services

on savings, credit and Micro-investment Planning

- Placement of Bank Sakhi- Institutionalizing CBRM for ‘Zero NPA’

Pvt Banks

- Opening of SB a/c- Channeling benefits to SHG &

members – Community Funds/ Interest Subvention/ other entitlements

- Credit Linkage of SHGs

NRLM

1. Policy Formulation 2. Project Financing 3. Technical Support

SHG

Expectation From Private Sector Banks

• Much greater Partnership with SRLMs for lending to women SHGs

• Data sharing on loan disbursed to women SHGs on monthly basis.

• Assign following codes to all accounts of SHGs• Unique code for Women SHGs – Assign gender

based codes for SHGs-Male, Female as well as mixed irrespective of promoting agency

• Unique code for NRLM – For both S/B and loan

accounts of women SHGs• channel Interest Subvention benefit for Women SHGs

Thank You