SELF HELP GROUP
NABARD conducted a survey in selected states to evaluate the impact of linkage programme between the banks and the Self Help Groups (SHGs) and the end result of it was positive and advantageous for both the banks and the borrowers. Thus, the Reserve Bank of India has issued a Master Circular on 30th June 2019 to implement the Self Help Group-Bank Linkage Programme to merge the banks and the rural poor for a shared benefit. The programme was launched to increase the loan volume of the SHGs, modify their money lending pattern from non-income generating activities to production-based activities.
Benefits of the SHG-BLP
- NABARD grants the stakeholders to take up the sponsorship of SHGs by way of promotional grant assistance
- The savings led microfinance model to become the leading organised financial annexation programme in the world, covering about 100 million households in the country
- The programme has so far provided the much-needed support for the women empowerment, as more than 85% of the Self Help Groups are operated by women groups
- Banks are encouraged to embrace the concept of Total Financial Inclusion
- The programme can benefit both the banks and the borrowers in cutting down the transaction charges and Doubling up the income of the SHGs
Moreover, the Government demands all the scheduled commercial banks to adhere to the standard set by the public sector banks and meet the entire credit requirements of SHG members as follows,
- Income generation activities that lead to the initiation of small-scale help organisation
- Income utilised for Social needs like housing, education and marriage
- Debt switching, the process of exchanging the debts between two entities of their commercial papers of the Stakeholders
Documents Required
Members
- PAN of all the members
- Aadhaar Card of all the members
- Valid Residential proof of all the members via Bank Statement, Driving License, Aadhaar Card, Utility Bill and Passport
- Bank statement with address – not older than 2 months
- Photograph
- Digital Signature
For Registered Office
- Address Proof of the registered office of the society
- NOC from the owner of the building in which registered office is situated
- List of all the members of the governing body with their signatures
- Declaration by the society’s president that he is willing and competent to hold the stated position
Other Details
- Main Object
- Name
- Capital Contributed
- Ratio of share between partners
- Member’s Educational Qualifications
- Email ID
- Phone number
*Cost of Stamp paper as per Government rules
Deliverables
- Pre Registration Consultation
- DIN for all Directors
- Digital Signature Token for Promoters
- Company Name Approval
- RBI Approval
- MOA + AOA
- Incorporation Certificate
- New Incorporation Kit
- Customized Incorporation Master File
- Company PAN Card
- Company TAN/TDS Number
- Bank Account Opening Document Support
