MicroFinance Institutions
Working capital
Term loans
Mix of both
Purpose
On lending as Micro Finance loans to SHGs, JLGs, other groups, individuals and their federations by the company.
Eligibility
- MFIs which are in existence for at least 3 years. However, in case of MFIs which are subsidiaries of existing financial institutions with strong credentials, one-year of existence may be considered subject to obtaining of corporate guarantee from the holding company.
- MFIs should have made profit during the last year, as per audited balance sheet
- The MFI should be categorized as per internal rating of NABKISAN.
- MFIs should be rated by RBI accredited credit rating agencies which should not be less than BB and its MFI grading for CRISIL should be mfR 1-4 and for other agencies M/ MFI 1-3.
- MFI should have impeccable credit history without active default to the lenders.
Security, interest & repayment
Security
Hypothecation of standard book debts & Cash Collateral/ Corporate Guarantee / Personal Guarantee and other securities as prescribed by NABKISAN
Rate of interest & Processing fees
Rate of interest & Processing fee is linked to the ALCO rate of Borrowing of NABKISAN and as per the rate of interest policy of NABKISAN applicable from time to time.
Repayment period
Up to 3 years*