Type of Loan
- Term loan
- On lending as Micro Finance loans to SHGs, JLGs, other groups, individuals and their federations by the company.
The MFIs which fulfill the following criteria, may be considered for finance:
- The MFIs which fulfill the following criteria, may be considered for finance:
- MFIs which are in existence for 3 years or more.
- MFIs should have made profit during the last year, as per audited balance sheet. However, considering the impact of Covid 19 induced lockdown and resultant impact on financial institutions, the following relaxations are considered:
- If the MFI has made losses during 2020-21, profits during two previous years (2019-20 & 2018-19), provided,
- they are in existence and doing business for more than 3 years
- there is no erosion in the share capital as on 31.03.21
- the Debt:Equity ratio is not more than 4 times as on 31.03.21
- CRAR is above the regulatory minimum prescribed
- the loss is on account of extra provisions (beyond the provisions stipulated by RBI) made by the MFI and not because of business losses.
- there is no rating downgrade beyond one notch during the year subject to minimum acceptable rating of NABKISAN
- MFI should not have defaulted in repayment of loans to banks and financial institutions.
- MFIs having an impeccable credit history.
- The mf should be categorised between NKR1 to NKR7 as per internal rating of NABKISAN
- MFIs should be rated by an accredited rating agency. The credit rating assigned by various accredited agencies and acceptable rating is as under:
|Rating Agency||Grading Assigned||Acceptable Rating|
|CRISIL||mfR 1 to mfR 8||mfR 1 to mfR 4|
|ICRA||M1 to M5||M 1 to M3|
|CARE||MFI 1, 2+, 2, 3+, 3, 4+, 4 & 5||MFI 1 to MFI 3+|
|ACUITE||MF 1 – MF 8||MFI 1 to MF 3|
|BRICKWORK||MF 1 - MF 8||MF 1 to MF 3|
|India Ratings||MFI 1 – MFI 8||MFI 1 to MFI 3|
|Infomerics||MFI 1 – MFI 5||MFI 1 to MFI 3+|
MFI Credit Rating:
|Rating Agency||Rating Assigned||Acceptable Rating|
|CRISIL||AAA (Highest Safety), AA (High Safety), A (Adequate Safety), BBB (Moderate Safety), BB (Moderate Risk), B (High Risk), C (Very High risk), D (Default)||AAA to BB (Within BB rating, BB minus (BB) may not be accepted)|
|ACUITE||AAA (Highest Safety), AA (High Safety),
A (Adequate Safety), BBB (Moderate Safety), BB (Moderate Risk), B (High Risk), C (Very High risk), D (Default)
|AAA to BBB|
Minimum share capital
- As per RBI Guidelines.
- Interest Margin to Implementing Agencies- RBI guidelines to be followed by MFIs.
- Hypothecation of book debts.
- Demand Promissory Note
- Registration of charge with the ROC
- Other collaterals to the satisfaction of NKFL.
- Personal Guarantee of the promoters
Rate of interest
- Rate of interest is proposed to be linked to Weighted Average Cost of Borrowing of NABKISAN and as per the rate of interest policy of NABKISAN applicable from time to time.
- Maximum upto 7 year
- A processing fee of minimum 0.25% plus applicable taxes for repeat cases and upto NKR3 risk category cases and for other cases 0.75% plus applicable taxes will be charged.