Tips for Field Worker s Vol 2 - Vanbandhu Kalyan Yojana

can be revolved according to members’ needs, for different
repayment periods. NGO could, however, insist on monthly
repayment. The recovered amounts could be further used
by the NGO to extend similar loans to other groups.
Functioning of the Revolving Fund
The Revolving Fund loan to the SHGs will range from
Rs.1000 to Rs.5000 depending upon the quality of the
group.
It should be made clear to the Self-Help Groups that
assistance from Revolving Fund is not a permanent activity.
It is merely a bridge loan till the SHGs are linked with
bank loans by the NGO.
Procedure
A sample application form that must be signed by the SHG
Group Leader should be given to field worker. It is
suggested that no other document should be asked from
the SHG. The NGO will assess the quality of the group as
soon as the application is received. A model proforma for
assessment is available with NGO. Once the NGO is satisfied
that the group's performance is of a high order, the loan
should be sanctioned along with the cheque for the required
amount. No receipt is necessary and there should be no
pre-disbursement formalities. The SHG must receive the
loan within 30 days of its application.
Eligibility Criteria for SHGs
a) The SHG should be between 6 and 9 months old;
b) The NGO will assess the SHG’s quality according to
the criteria laid down in the proforma. The following
limits could be sanctioned to individual groups on
the basis of their assessment:
Points obtained Loan limit
150 and above Rs. 5,000
125-149 Rs. 3,000
c) The SHGs already linked with Banks, or those having
obtained loans from the RMK or some other
organisation, will not be eligible to access the
Revolving Fund; and
SWA-SHAKTI
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