Inclusion of Self Help Group
Reserve Bank of India has
advised that in the meeting held on 28th May, 2004 under the
chairmanship of the Secretary (SSI & ARI), Government of India, the
following has been adopted:
Help Groups (SHGs) can be considered for assistance under PMRY provided:
youth satisfying the eligibility criteria laid down under the scheme,
volunteer to form SHG to set up self-employed ventures (Common Economic
A Self Help Group may
consist of 5 to 20 educated unemployed youth.
No upper ceiling on
Loan may be provided as
per individual eligibility taking into account the requirement of the
SHG may undertake
common economic activity of which loan is sanctioned without resorting to
onward lending to its members.
Subsidy may be provided
to the SHG as per the eligibility of the individual members taking into
account relaxation provided in North-Eastern States, Uttaranchal, Himachal
Pradesh and Jammu & Kashmir.
Required margin money
contribution (i.e. subsidy and margin to be equal to 20% of the project
cost) should be brought in by the SHG collectively.
The exemption limit for
obtention of collateral security will be Rs.5 lakhs per borrowal account
for projects under Industry Sector. Exemption from collateral will be
limited to an amount of Rs. 1 lakh per member of SHG for projects under
service and Business Sectors. Enhancement in limit of exemption of
collateral; may be considered in deserving cases.
may decide necessity of pre-disbursal training for all the
members/majority of the members in the group.