Over 47 crore customers are served by the State Bank of India, one of the largest public sector banks. The SBI has experienced rapid expansion and the highest profit ever. In an effort to acquire additional customers, the public sector bank is likely to expand its network.
Self-Help Groups can obtain a loan from SBI that does not require any collateral and has a good interest rate up to Rs 10 lakh. The Samooh Shakti Campaign of the SBI SHG began on October 1, 2022, and it will end on March 31, 2023.
“SBI is empowering Self-help Groups (SHGs) with excellent benefits on credit facilities,” read a tweet from SBI.
Interest rates for the SBI SHG Samooh Shakti Campaign:
For loans up to Rs. 3 lakh, the rural women’s group of all districts charges an interest rate of 7%. 5 lakh is a one-year MCLR. Above 5 lakh—for all SHGs—is 9 percent. According to the SBI website, the bank had lent Rs. 24,023 crores to 8.71 million SHGs, with 91 percent led by women. SHGs can get cash credit limits and term loans from the bank.
SHGs can get loans from the State Bank of India to meet all of their credit requirements, including activities that generate funds and social necessities like housing, education, marriage, and debt exchange.
The RBI claims that the DAY-NRLM program’s collateral-free loans to self-help groups have increased from Rs. 10 million to Rs. 20 lakhs.
NABARD’s operational guidelines allow banks to approve SHGs for savings-linked loans, ranging from a saving-to-loan ratio of 1:1 to 1:4. However, in the event of matured SHGs, the bank may approve loans exceeding the limit of four times the amount saved.
up to a total of Rs. The SHGs would not be required to pay any margin or collateral. SHG savings bank accounts should not have liens placed on them or require deposits when loans are approved.
