The State Bank of India, one of the largest public-sector banks serves over 47 crore customers. The SBI has been rapidly growing and recorded the highest-ever profit as well. The public sector bank is likely to grow its network in a bid to add more customers. SBI is offering a collateral-free loan to customers up to Rs 10 lakh with a good interest rate to Self Help Groups. The SBI SHG Samooh Shakti Campaign was started on 1st October 2022 and will end on 31 March 2023.
SBI has tweeted, "SBI is empowering Self-help Groups (SHGs) with excellent benefits on credit facilities."
SBI SHG Samooh Shakti Campaign interest rates:
- For loans upto Rs 3 lakh - rural women group of all districts - interest rate- 7%
- Above Rs 3 lakh up to Rs. 5 lakh is 1-year MCLR
- Above Rs 5 lakh --for all SHGs -- is 9%
(Also Read: Highest interest rate of up to 9.36% on FDs by this NBFC; know additional interest for senior citizens)
According to the SBI website, as of March 31, 2022, the bank had lent Rs. 24,023 crores to 8.71 lac SHGs, 91% of which were headed by women. The Bank provides both Term Loans and Cash Credit limits to SHGs.
The State Bank of India offers loans to SHGs to help the groups fulfil all of their credit needs, including activities that generate money and social necessities like housing, education, marriage, and debt exchange.
According to the RBI, the collateral-free loans made under the DAY-NRLM programme to self-help groups have increased from Rs. 10 lakhs to Rs. 20 lakhs.
Banks may approve SHGs for savings-linked loans in accordance with operational guidelines released by NABARD (varying from a saving-to-loan ratio of 1:1 to 1:4). However, the bank may, in the event of matured SHGs, grant loans in excess of the cap of four times the amount saved.
Up to a maximum of Rs. 10 lakh, the SHGs would not be required to pay any collateral or margin. When authorising loans, no deposits should be required and no liens should be placed on SHGs' savings bank accounts.
