Get SBI collateral free loan upto Rs 10 lakh, scheme ENDS on 31 March 2023

New Delhi: State Bank of India is offering collateral free loan upto Rs 10 lakh to Self Help Groups, along with an attractive interest rate. The SBI SHG Samooh Shakti Campaign that started from 1st October 2022 will end on 31 March 2023.

Under the SBI SHG Samooh Shakti Campaign, SHGs can get loans at attractive interest rates. For loan upto Rs 3 lakh --rural women group of all districts -- rate of interest is 7 percent. While rate of interest above Rs 3 lakh upto Rs 5 lakh is 1 year MCLR and rate of interest for above Rs 5 lakh --for all SHGs -- is 9 percent.

SBI has tweeted, "SBI is empowering Self-help Groups (SHGs) with excellent benefits on credit facilities."

SBI is empowering Self-help Groups (SHGs) with excellent benefits on credit facilities.

Learn more about it: https://t.co/uh5PSKRxIv#SBI #AmritMahotsav #CreditFacility #SelfHelpGroup #Finance #MeraSHGMeraBank pic.twitter.com/IsgBWxVBdl — State Bank of India (@TheOfficialSBI) December 30, 2022

SBI website reads that as on 31st March 2022, Bank’s lending to SHGs is Rs.24,023 crore to 8.71 lac SHGs, of which 91% are women. The State Bank of India provides loans to SHGs for meeting entire credit requirements of the groups like income generation activities, social needs like housing, education, marriage, and debt swapping.

The Bank provides both Term Loans and Cash Credit limits to SHGs.

As per RBI circle no. FIDD.GSSD.CO.BC. No.09/09.01.003/2021-22 dated 09th Aug 2021, the collateral free loans to self Help Groups under DAY-NRLM has been increased from Rs. 10 lakhs to Rs.20 lakh. As per operational guidelines issued by NABARD, SHGs may be sanctioned savings linked loans by banks (varying from a saving to loan ratio of 1:1 to 1:4). However, in case of matured SHGs, loans may be given beyond the limit of four times the savings as per the discretion of the bank.

No collateral and no margin would be charged up to ₹10.00 lakh limit to the SHGs. No lien should be marked against savings bank account of SHGs, and no deposits should be insisted upon while sanctioning loans.