Micro Credit for Self Help Groups
Dhanlaxmi Bank lends to self help groups, directly or through NGOs, so members can take small loans for income earning work or household needs.
Last updated on
- Status
- Open
- Run by
- Dhanlaxmi Bank Limited
What you get
- Loan of up to seven times the savings the group has built up
- Repayment agreed with the group based on its income, up to five years, or longer for projects depending on their income
- Can fund income earning projects run by the group
Who can apply
- Nano and micro enterprises.
- Group must score at least 80% on the NABARD rating model
- All members guarantee the loan
- For project loans the bank checks that the project is viable
How to apply
- Pass a resolution at a group meeting to borrow from the bank
- Authorised representatives submit the loan application at the branch
- The bank rates the group and, for a project, checks that it is viable
In person, Group representatives apply at a Dhanlaxmi Bank branch, or through the sponsoring NGO
In Kerala, through a Dhanlaxmi Bank branch, or the NGO that formed the group
Documents to keep ready
- Loan application signed by the group's authorised representatives
- Resolution passed in a group meeting to borrow from the bank
- Recommendation letter from the NGO or self help promoting institution, if sponsored
- Agreement among all members authorising the representatives, stamped as a general power of attorney
- Demand promissory note and related letters signed by the representatives
- Articles of agreement signed by the group representatives
- Hypothecation documents for any assets bought with the loan
Where we found this
An independent guide by The Company of Four, not a government website. Schemes change often, so check every detail on the official website before you apply. Links marked ↗ open external websites that we do not run, and we are not responsible for their content. Seen something out of date? Tell us and we will look into it.