Micro Finance.

Sanction :

• Only A and B rated groups could avail loans under the modified Pragathi Nidhi     programme .

• The groups having repayment capacity are able to get adequate loans.

• Approval of sub committee of federation, which is constituted for the purpose is    necessary.

• Sevaniraths, supervisors recommend the loan. Members desiring to get loan above    Rs. 50,000- need to submit security pledge letter.

• The members could avail loan from the group at the discretion of the group.

Tenure :

• For Agriculture and infrastructure up to 5 years.

• Revolving fund for 3 years.

• Productive fund for 4 years.

• Construction for new houses for 10 years.

The member make repayment on weekly basis and groups repay to SKDRDP on monthly basis.

Rate of interest :

• From banks to SKDRDP cost of funds as on 31-3-2010 = 9.23%.

• From SKDRDP to the groups at 11% daily reducing balance for tenure upto 3 years.

• From SKDRDP to the groups at 11.25% daily reducing balance for tenure beyond 3 years.

• From groups to members at 9% annual reducing balance for tenures upto 156 weeks.

• From groups to members at 12% annual reducing balance for tenures beyond 156weeks.

Service Charge :

1% service charge is collected on all loans disbursed.

Repayment schedule :

• SKDRDP pays to the bank at monthly / quarterly rests.

• Groups pays to SKDRDP at monthly rests.

• Members pays to SKDRDP at weekly rests.

• All payments are on equated installments including principal and interest.