Prime: The loans sanctioned to NGOs / MFIs / MFI-NBFCs are also to be treated as clean loans. Personal guarantee of the promoters /book debts of the company may be taken as security wherever possible. Margin of 10% shall be stipulated for book debts if taken as security.

Hypothecation of Book-debts/receivables may be stipulated as security to the MFIs/NBFC-MFIs, wherever possible. In respect of loans to NGO- MFI/NBFC-MFI registered as a company, the charges on Book debts and fixed assets(if stipulated as security) owned by them FI shall be registered with Registrar of Companies (ROC), as perstatute.

Collateral: Cash Margin of 10% may be stipulated as a general rule. However this may be permitted to be relaxed by 5% to the deserving cases by sanctioning authority

• Micro Finance model – Group lending through financial intermediaries
  • Finance to MFIs for On lending to the Self Help Groups /Joint Liability Groups (NABARD MODEL )
  • Finance to MFIs for on lending to Micro Credit Groups/ Joint Liability Groups
• Micro Finance institutions compromises of:
  • Micro Finance Organisations (MFOs)
• Micro Finance Institutions – NBFCs (Non Banking Financial Companies)

The loans permitted under the scheme is to be treated as Single Transaction Term loans and should be repaid in monthly/quarterly/half yearly installments, with repayment holiday of three months in the beginning. The maximum repayment period that can be generally permitted is 48 months inclusive of moratorium period. The terms of repayment can be extended up to 60 months depending upon the income generation. The interest is to be recovered as and when debited. The entire interest debited to the account during the repayment holiday is to be recovered along with the first six installments.