report on shg bank linkages facts
TRANSCRIPT
862019 Report on SHG Bank Linkages Facts
httpslidepdfcomreaderfullreport-on-shg-bank-linkages-facts 14
Report On SHG Bank Linkage Facts amp Problems
I visited Orvakal Mandal in Kurnool district and Bukkarayasamudaram Mandal in Anantpur
district In my visit I interacted with members (women) of SHG groups on difficulties they facein getting loans from the bank I tried to get the genuine response on these points
MCP Prepared In both the Mandal where I visited and interacted with SHG members
they all said that they prepare MCP before approaching to bank for loan They
mentioned that not all the SHG members in group are qualified to understand MCP
preparation hence their book keeper along with leader prepare MCP Here I observed
in most of the cases they prepare MCP 1 or 2 day before approaching to the Bank by
looking at the date mentioned in MCP and Bank loan sanction date
MCP submitted to Bank All those SHG members with whom I interacted in this two
Mandals submit their MCP to bank on each time they approach to bank for loan
Bank loan sanction Bank after screening the whole necessary documents sanctions the
loan but here one thing is worth mentioning that loan requested amount by SHG group
may not be fully sanctioned by the respective bank
Members received the loan It is now become a practice in almost every SHG groups
that loan amount received from the bank is equally divided among the members
irrespective of the amount demanded by the members
Rate of interest charged by bank Bank charge 13 pa interest rate on loan amount
Penal interest Penal interest is charged when group is not paying the loan EMI on
scheduled time it is 18-19 pa
Processing charge Bank collects 1 as processing charge for the loan sanctioned for
which bank gives receipt also
Insurance No insurance is taken on loan by bank
Any other cost (hidden cost) No there is no hidden cost in loan getting from bank It is
different that members sometime buy some sweets for their Bank Mithras or their book
keeper just for as kind gesture
862019 Report on SHG Bank Linkages Facts
httpslidepdfcomreaderfullreport-on-shg-bank-linkages-facts 24
SHG to member loaning interest rate SHG group re- lend the loan amount to its
members at the same rate at which they get from bank ie 12 pa
No of trips to bank In this point womanrsquos looked bit uncomfortable they told they gets
loan on prodding by me they revealed that it may take 2days to 1 week depending
upon the rush in bank bank staff presence Some time delay also causes due to
incomplete papers stamp photo etc
No of members visited the bank each time At the time of loan taking from the bank all
group members visit bank while at the time of depositing EMI generally group leader(s)
and book keeper visit bank
Observation
I visited some villages (Uyyalawada Nanoor Lodhipally) in Orvakal Mandal here presence of
MFI is insignificant although there is 2 MFIs (Spandana and Mullshednam) in Hussainapuram
but the SHG women in this Mandal prefer to take loan from their group and from MMS
Reason for these could be attributed to
Mrs Vijaya Bharti itrsquos her sheer effort that brought awareness among the women of
this Mandal
Gramin Vikas Bank Nanoorrsquos the present manager is very helpful to SHG groups
sometimes if documents are in order than group do gets loan sanctioned in one day
Presence of Mahila bank in this Mandal
While in my visit to Bukkarayasamudaram Mandal I came to know that there are almost all the
major MFIs operate in this Mandal and in large whole district with a rate over than 25 pa on
loan amount
I visited Kusnagar village in this Mandal here almost all the women of the all SHG group havetaken loan from MFIs shockingly not with 1 or 2 MFIs but on average more than 3 MFIs
On asking about it women told me that their requirement is more than what they get from
bank or Mandal Samakhya These rural poor women pay a hefty rate of interest on loan taken
from MFIs even though they take loan from MFIs because they donrsquot have any other avenue
862019 Report on SHG Bank Linkages Facts
httpslidepdfcomreaderfullreport-on-shg-bank-linkages-facts 34
IRR Calculation
(In Rs)
Bank interest rate 12 pa
Effective Loan Rate for SHGs in Orvakal Mandal Kurnool
S No Deposit Date Cash Flow
Principle Interest
1 1-Jan-10 -96000
2 1-Feb-10 10000 1000 11000
3 1-Mar-10 10000 900 10900
4 1-Apr-10 10000 800 10800
5 1-May-10 10000 700 10700
6 1-Jun-10 10000 600 10600
7 1-Jul-10 10000 500 10500
8 1-Aug-10 10000 400 10400
9 1-Sep-10 10000 300 10300
10 1-Oct-10 10000 200 10200
11 1-Nov-10 10000 100 10100
Total 100000 5500 105500
IRR 1780
Annual rate 2136
Money sanctioned from bank 100000
Money deducted as processing fee (1) 1000
Wage loss (20 mandays Rs 80mandays) 1600
Transportation cost (10 members 2 day bank visit to and fro) 400
Goodwill gesture to Book keeper Bank Mithras 1000
862019 Report on SHG Bank Linkages Facts
httpslidepdfcomreaderfullreport-on-shg-bank-linkages-facts 44
IRR Calculation With Penal Interest (18)
Delay in payment Total interest Extra
amount to
Paid
Loss of
Pavala
Vaddi
T Extra Amt E IRR Annual Rate
1st EMI 8250 2750 4125 6875 230 2754
2nd EMI 7750 2250 4125 6375 220 2634
3rd EMI 7300 1800 4125 5925 211 2529
4th EMI 6900 1400 4125 5525 203 2438
5th EMI 6550 1050 4125 5175 197 2360
6th EMI 6250 750 4125 4875 191 2294
7th EMI 6000 500 4125 4625 187 2240
8th EMI 5800 300 4125 4425 183 2198
9th EMI 5650 150 4125 4275 218 2616
10th EMI 5550 50 4125 4175 179 2146
862019 Report on SHG Bank Linkages Facts
httpslidepdfcomreaderfullreport-on-shg-bank-linkages-facts 24
SHG to member loaning interest rate SHG group re- lend the loan amount to its
members at the same rate at which they get from bank ie 12 pa
No of trips to bank In this point womanrsquos looked bit uncomfortable they told they gets
loan on prodding by me they revealed that it may take 2days to 1 week depending
upon the rush in bank bank staff presence Some time delay also causes due to
incomplete papers stamp photo etc
No of members visited the bank each time At the time of loan taking from the bank all
group members visit bank while at the time of depositing EMI generally group leader(s)
and book keeper visit bank
Observation
I visited some villages (Uyyalawada Nanoor Lodhipally) in Orvakal Mandal here presence of
MFI is insignificant although there is 2 MFIs (Spandana and Mullshednam) in Hussainapuram
but the SHG women in this Mandal prefer to take loan from their group and from MMS
Reason for these could be attributed to
Mrs Vijaya Bharti itrsquos her sheer effort that brought awareness among the women of
this Mandal
Gramin Vikas Bank Nanoorrsquos the present manager is very helpful to SHG groups
sometimes if documents are in order than group do gets loan sanctioned in one day
Presence of Mahila bank in this Mandal
While in my visit to Bukkarayasamudaram Mandal I came to know that there are almost all the
major MFIs operate in this Mandal and in large whole district with a rate over than 25 pa on
loan amount
I visited Kusnagar village in this Mandal here almost all the women of the all SHG group havetaken loan from MFIs shockingly not with 1 or 2 MFIs but on average more than 3 MFIs
On asking about it women told me that their requirement is more than what they get from
bank or Mandal Samakhya These rural poor women pay a hefty rate of interest on loan taken
from MFIs even though they take loan from MFIs because they donrsquot have any other avenue
862019 Report on SHG Bank Linkages Facts
httpslidepdfcomreaderfullreport-on-shg-bank-linkages-facts 34
IRR Calculation
(In Rs)
Bank interest rate 12 pa
Effective Loan Rate for SHGs in Orvakal Mandal Kurnool
S No Deposit Date Cash Flow
Principle Interest
1 1-Jan-10 -96000
2 1-Feb-10 10000 1000 11000
3 1-Mar-10 10000 900 10900
4 1-Apr-10 10000 800 10800
5 1-May-10 10000 700 10700
6 1-Jun-10 10000 600 10600
7 1-Jul-10 10000 500 10500
8 1-Aug-10 10000 400 10400
9 1-Sep-10 10000 300 10300
10 1-Oct-10 10000 200 10200
11 1-Nov-10 10000 100 10100
Total 100000 5500 105500
IRR 1780
Annual rate 2136
Money sanctioned from bank 100000
Money deducted as processing fee (1) 1000
Wage loss (20 mandays Rs 80mandays) 1600
Transportation cost (10 members 2 day bank visit to and fro) 400
Goodwill gesture to Book keeper Bank Mithras 1000
862019 Report on SHG Bank Linkages Facts
httpslidepdfcomreaderfullreport-on-shg-bank-linkages-facts 44
IRR Calculation With Penal Interest (18)
Delay in payment Total interest Extra
amount to
Paid
Loss of
Pavala
Vaddi
T Extra Amt E IRR Annual Rate
1st EMI 8250 2750 4125 6875 230 2754
2nd EMI 7750 2250 4125 6375 220 2634
3rd EMI 7300 1800 4125 5925 211 2529
4th EMI 6900 1400 4125 5525 203 2438
5th EMI 6550 1050 4125 5175 197 2360
6th EMI 6250 750 4125 4875 191 2294
7th EMI 6000 500 4125 4625 187 2240
8th EMI 5800 300 4125 4425 183 2198
9th EMI 5650 150 4125 4275 218 2616
10th EMI 5550 50 4125 4175 179 2146
862019 Report on SHG Bank Linkages Facts
httpslidepdfcomreaderfullreport-on-shg-bank-linkages-facts 34
IRR Calculation
(In Rs)
Bank interest rate 12 pa
Effective Loan Rate for SHGs in Orvakal Mandal Kurnool
S No Deposit Date Cash Flow
Principle Interest
1 1-Jan-10 -96000
2 1-Feb-10 10000 1000 11000
3 1-Mar-10 10000 900 10900
4 1-Apr-10 10000 800 10800
5 1-May-10 10000 700 10700
6 1-Jun-10 10000 600 10600
7 1-Jul-10 10000 500 10500
8 1-Aug-10 10000 400 10400
9 1-Sep-10 10000 300 10300
10 1-Oct-10 10000 200 10200
11 1-Nov-10 10000 100 10100
Total 100000 5500 105500
IRR 1780
Annual rate 2136
Money sanctioned from bank 100000
Money deducted as processing fee (1) 1000
Wage loss (20 mandays Rs 80mandays) 1600
Transportation cost (10 members 2 day bank visit to and fro) 400
Goodwill gesture to Book keeper Bank Mithras 1000
862019 Report on SHG Bank Linkages Facts
httpslidepdfcomreaderfullreport-on-shg-bank-linkages-facts 44
IRR Calculation With Penal Interest (18)
Delay in payment Total interest Extra
amount to
Paid
Loss of
Pavala
Vaddi
T Extra Amt E IRR Annual Rate
1st EMI 8250 2750 4125 6875 230 2754
2nd EMI 7750 2250 4125 6375 220 2634
3rd EMI 7300 1800 4125 5925 211 2529
4th EMI 6900 1400 4125 5525 203 2438
5th EMI 6550 1050 4125 5175 197 2360
6th EMI 6250 750 4125 4875 191 2294
7th EMI 6000 500 4125 4625 187 2240
8th EMI 5800 300 4125 4425 183 2198
9th EMI 5650 150 4125 4275 218 2616
10th EMI 5550 50 4125 4175 179 2146
862019 Report on SHG Bank Linkages Facts
httpslidepdfcomreaderfullreport-on-shg-bank-linkages-facts 44
IRR Calculation With Penal Interest (18)
Delay in payment Total interest Extra
amount to
Paid
Loss of
Pavala
Vaddi
T Extra Amt E IRR Annual Rate
1st EMI 8250 2750 4125 6875 230 2754
2nd EMI 7750 2250 4125 6375 220 2634
3rd EMI 7300 1800 4125 5925 211 2529
4th EMI 6900 1400 4125 5525 203 2438
5th EMI 6550 1050 4125 5175 197 2360
6th EMI 6250 750 4125 4875 191 2294
7th EMI 6000 500 4125 4625 187 2240
8th EMI 5800 300 4125 4425 183 2198
9th EMI 5650 150 4125 4275 218 2616
10th EMI 5550 50 4125 4175 179 2146