Looking for a Group Business Loan from Indian Bank?

Look no further. This page contains all the information you will need on Indian Bank’s Self-Help Group Business Loan.

Indian Bank SHG Bank Linkage Programme

The group business loan helps people in the SHGs for income generation or livelihood-related activities. The maximum amount of loan sanctioned under this loan is Rs. 10 lakh.

Features of SHG Bank Linkage Programme

Why this Loan?

  • The loan is meant to help SHGs generate income and improve their standard of living
  • The Indian Bank SHG Bank Linkage Loan scheme is specially designed for groups in the underserved section of the society

Loan Amount

  • First Linkage: The maximum loan amount sanctioned under this loan is up to 4 times the savings of the group or Rs. 1 lakh, whichever is lower
  • Second Linkage: The maximum loan amount sanctioned under this loan is up to 8 times the savings of the group or Rs. 3 lakh, whichever is lower
  • Third Linkage: The maximum loan amount sanctioned under this loan is up to 10 times the savings of the group or Rs. 5 lakh, whichever is lower
  • Fourth Linkage: The maximum loan amount sanctioned under this loan is up to 10 times the savings of the group or Rs. 7.5 lakh, whichever is lower
  • Fifth Linkage: The maximum loan amount sanctioned under this loan is up to 10 times the savings of the group or Rs. 10 lakh, whichever is lower

Interest

  • Loan Tenure up to 35 months: The interest rate charged by Indian Bank on this loan is 11.75% for loan amount up to Rs. 3 lakh and 12% for loan amount above Rs. 3 lakh
  • Loan Tenure Above 35 months: The interest rate charged by Indian Bank on this loan is 12.50%
  • The moratorium period for this loan scheme is course period plus 12 months after the completion of the course

Repayment

  • The repayment period for this loan is 5 years

Security Needed

  • The bank asks for hypothecation of assets wherever created under this scheme as security

Eligibility

  • All certified Self-Help Groups are eligible for this loan
  • This loan is sanctioned for income-generation and livelihood-related activities of SHGs

Documents Needed for Self-Help Groups

  • Duly-filled and signed Loan Application Form
  • Loan Authorisation Letter
  • ID, Address and Banking Proof: Letter of Certification from empanelled SHPI certified by NABARD Official empowered at the village or taluka level, SHG Registration certificate, Passbook of existing account with a public sector/schedules commercial bank, original letter of introduction from a bank official of a public sector bank, KYC certification by empanelled business correspondent of the bank, Voter ID card, Sarpanch Letter
  • Income/Banking Proof: Last 6 months Bank Account Statement of applicant and co-applicant, Loan Statement of Running Loans, Latest Closed Loan NOC, Net Worth of the applicant and co-applicant
  • Direct Debit Form, ECS Mandate or PDC Declaration
  • SHPI Recommendation letter
  • Repayment track record if the group has credit linkage with any other bank or financial institution

Reference Facts

  • Indian Bank Website: www.indianbank.in
  • Headquarters: Chennai, Tamil Nadu
  • Call Centre Toll-Free Number: 1800 425 00 000, 1800 425 4422