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Schemes & Other Activities 

योजनाएं और अन्य गतिविधियां(हिन्दी में )

The important schemes & other activities of Rashtriya Mahila Kosh (RMK) are as under:-

   A.  Loan Promotion Scheme
   B.  Main Loan Scheme
   C.  Gold Credit Scheme
   D.  Housing Loan Scheme
   E.  Working Capital Term Loan Scheme
   F.  Franchisee Scheme
   G.  Re-Finance to Urban Cooperative Banks/ Mahila Cooperative Banks
   H.  Nodal Agency Scheme

   I.  Awareness Generation 
   J.   Capacity Building & Skill Upgradation 
   K.  Marketing Linkages 
   L.   Entrepreneurship Development 

The common features of all loan schemes are as follows :-

Table I

Eligible Organizations/ Eligibility Norms

1. Minimum three years of registration as a Society / Co-operative Society / VO/ Sec. 25 Company (Not for profit).

2. Women Development Corporation/ Cooperatives/Suitable State Government Agencies such as DRDA, Federation, Municipal Corp.

2. Three years experience in thrift & credit management (Six months for applying under Loan Promotion Scheme)

3. Above 90% recovery performance during last three years

4. Satisfactory fund management & financial performance

5. Good track record in the field of Socio-economic sector

6. The office bearers of the organization should not be elected representative of any political party

7. The organization should have proper system of accounting, which should have been audited & published every year and they should not have any serious irregularities

8. The application should clearly reflect the source of funds utilized earlier for credit

9. The bylaws of the organization should have provision for getting loans from various funding agencies 

10. NGOs seeking loan assistance of ` 1 crore and above, at the time of application should be rated by any reputed credit-rating agency like MCRIL, CRISIL, CARE, SMERA, Access Development Services.

Security

1. RMK does not take any collateral security for sanctioning loan up to ` 1 crore.

2. If the loan amount of the borrowing organization exceeds
`1 crore, it has to provide 10% of the sanction amount as security in shape of Fixed Deposit.

3. In case of State Govt. organization, the organization/ department has to arrange State Govt. guarantee if their balance sheet shows deficit/loss.

Margin Money

The organization applying for loan to RMK has to contribute 10% of the loan amount sanctioned.

Maximum Loan

1. ` 50,000/- per woman beneficiary for income generating activities.

2.
` 1,00,000/- per woman beneficiary for low cost house construction/ repair and maintenance.

Note:- The above ceiling on individual loans are subject to extant RBI guidelines.
Procedure for Sanction of Loan Once a completed application with the required documents is received in RMK office, a pre-appraisal study would be undertaken through field visits in order to ascertain the veracity/ genuineness of the claim as made in the application and the technical/ financial viability of the proposal. The appraisal report is placed before the Loan Committee for decision on the admissibility of the loan application applied for and its amount. Once the decision of the Committee has been taken, a Sanction Letter comprising of the terms & conditions of the loan is sent to the organization concerned for execution of  the agreement.
Mode of Disbursement  Sanctioned Loan amount is disbursed in 2 equal installments except under the Gold Credit Scheme.
Repayment  Repayable in eleven quarterly installments with an initial moratorium of six months.
MIS 1. Every quarter the organization has to be submit Quarterly Performance Report/Progress report of the micro credit program implemented by the organization.

2. The organization has to submit Annual Report and Audited Financial Statement every year within six month of completion of the financial year.

3.  Balance confirmation certificate after every half year of each financial year.

Repeat Loan

On repayment of 50% of the existing loan the borrowing organization will be eligible for applying a fresh loan/repeat loan.

Rate of Interest

1. Under all other
    Schemes except Franchisee Scheme
    Interest rate for loan sanctioned prior to 31.03.2013

    i) RMK to NGO - 8% p.a. on reducing balance

   ii) NGO to SHG/Beneficiary - any rate on or above 8% p.a.
        subject to maximum ceiling of 18% p.a. on reducing balance

    Interest rate for loan sanctioned from 01.04.2013 onwards

    i) RMK to NGO - 6% p.a. on reducing balance

   ii) NGO to SHG/Beneficiary - any rate on or above 6% p.a.
        subject to maximum ceiling of 14% p.a. on reducing balance

2. Under
    Franchisee
    Schemes
    i) RMK to Franchisee - 5% p.a. on reducing balance

   ii) Franchisee to Sub-Franchisee /NGO - any rate on or
        above 5% p.a. subject to maximum ceiling of 8% p.a.
        on reducing balance

   iii) Sub-Franchisee/NGO to SHG/Beneficiary - any rate on
        or above 8% p.a. subject to maximum ceiling of 18%
        p.a. on reducing balance.

A brief description of each of the Loan Schemes is as under:-

A. Loan Promotion Scheme image3.gif (90184 bytes)

This scheme is for providing loans to newer and smaller organizations with experience of atleast 6 months in thrift & credit. The organization can avail a  maximum loan upto ` 10 lakhs. The application has to be sent to RMK in the prescribed proforma with all thee documents as prescribed. The proforma is available on the website of RMK. 

Eligibility  : Other eligibility norms remain the same as mentioned in the table I above.

B. Main Loan Scheme

This scheme is for providing loans to organizations having minimum 3 year experience in thrift & credit activities. The organization can avail a  maximum loan upto ` 2 crores for 1 state. An organization can avail loan under the scheme for a maximum of 3 states at a time. If the organization avails loan for more than 1 state, then the maximum loan amount can be upto ` 6 crores. The application has to be sent to RMK in the prescribed proforma with all thee documents as prescribed. The proforma is available on the website of RMK.

Eligibility  : Other eligibility norms remain the same as mentioned in the table I above.


C. Gold Credit Scheme

This scheme is for providing bulk loans to medium and large NGOs. This scheme is meant for organization which have in the past availed loan from RMK and have not defaulted in repayment. The organization can avail a maximum loan upto
` 5 crores. This amount can be given as loan to the organization in a single installment. The application has to be sent to RMK in the prescribed proforma with all thee documents as prescribed. The proforma is available on the website of RMK.

Repayment period : Five half yearly installments with an initial gestation period of one year.

Eligibility  : Other eligibility norms remain the same as mentioned in the table I above.


D. Housing Loan Scheme

This scheme is for providing loan for construction/ repair and maintenance of houses to women who are members of Self Help Group/ Joint Liability Groups (JLGs). This loan is provided through IMOs. The organization can avail a maximum loan upto ` 1,00,000/- per beneficiary for construction of low cost house. The application has to be sent to RMK in the prescribed proforma with all the documents as prescribed. The proforma is available on the website of RMK.

Eligibility  : Other eligibility norms remain the same as mentioned in the table I above.

E. Working Capital Term Loan Scheme

This scheme is for providing working capital term loan to the intermediary organization for backward and forward marketing linkage of product of Women SHGs/Individuals and group entrepreneurs including technology transfer, education and skill up gradation.
The applicant has to submit a detailed project proposal to RMK.

Eligibility Norms

a)  The organization should be registered for not less than 3 years as on the date of application to RMK.

b)  The organization should have minimum three years experience in the field of micro-credit management, SHG formation, SHG promotion & development.

c)  It should have excellent recovery management (at least maintained 90% recovery rate in case of loan availed from other funding agencies/internal loan of SHG).

d)  There should be proper & specific clause/provision in the By-laws Memorandum of Association of the organization having power to borrow or to raise loan from any outside agencies.

e)  The office bearer of the organization should not be elected members of any political party.

f)  The organization should have a proper system of maintaining accounts, which should have been audited & published every year and there should not have been any serious irregularities.

g)  The organization has to submit a detail project proposal, which should be economically and technically viable and fulfill the social objectives/responsibilities of the organizations.

h)  The borrowing organization should have availed a minimum loan of
` 25 lakhs or above under micro-credit scheme of RMK/SIDBI/NABARD/Commercial Banks/Other Financial Institutions.

     (This condition will not be applicable for Govt. organization).

Preferential Conditions

1.  The organization should preferably employ women members of the SHG or any poor women entrepreneur or women getting shelter in the shelter home run by various Ministries of India, State Govts. and other  Funding Agencies.

2.  The NGO has to ensure `End to End' solution of the women SHG members/women entrepreneurs for smooth  operation of their activities.

Purpose of Loan

The loan under WCTL can be utilized by the borrowing organization for the following purpose :-

1.   For development of infrastructure to implement micro-credit programme like :-

      - Vehicle to carry SHG product from production place to market place.
      - Work shed to carry out SHG activities.
      - Business outlets/shops for selling of SHG products.
      - For establishment of chilling plant, small size cold store, godown, local hat etc.

2.  To carry out various Govt. program by investing fund availed from RMK by employing SHG members/ women entrepreneur.

3.    Procurement of SHG product and marketing.

4.    Purchase/Lease of land to carry out corps cultivation by employing SHG members.

5.   To provide loan to individual women micro entrepreneur or group of women entrepreneurs to undertake income generating activities. The organization has to undertake the to marketing of the product of women entrepreneurs and ensure for repayment of loan.

6.    To rehabilitate sick societies, (the societies should have 1/3 women members) sick women SHG.

7.    To repay the loan availed by the societies (1/3 women members)/women SHG in higher interest rate either from money lender or funding agencies.

8.    To provide technical services to women SHG/women entrepreneur.

9.    To carry out various training/capacity building/skill up gradation/education program of SHG members/small women entrepreneur.

10.   For export business of the products of SHG/women entrepreneur.

11.   To organise "Exhibition and sale" for marketing of products of SHG/micro entrepreneur.

12.   To extend loan to women SHG/group of women entrepreneurs for the purpose mentioned in SL.1 to 11.   

Maximum Amount of Loan

1.  The maximum amount of loan to be provided by RMK to borrowing organization will be ` 1 crore per State. However the organization could avail maximum loan of ` 3 crores to operate in 3 States.

2.  Loan amount is to be decided on case to case basis considering the actual need of the loan, financial health/management of the organization, experience/exposure in micro-credit & creditability of the organization.

3.  The second loan will be considered only after complete repayment of first loan.

4.  The working capital loan will be assessed as under :-

     Amount of proposed credit proposal - available margin with the organization = Working Capital Term Loan (WCTL).

5.  The review of WCTL will be made at the end of each financial year.

Security

1.  No security will be taken for loan upto ` 1 crores.

2.  In case of loan above
` 1 crores, the organization has to arrange 25% of the sanctioned amount as security in shape of fixed deposit/mortgage of land and building.

3.  All the movable assets created out of RMK's loan will be hypothecated to Rashtriya Mahila Kosh.

4.  The organization has to mortgage (equitable mortgage of immovable properties that is deposited of title deeds of immovable properties) the immovable properties which will be created out of RMK's loan.

5.  In case of corporation/federation or any such State Govt. organization will require to be arranged State Govt. guarantee for borrowing if running in deficit/loss.

6.  The immovable assets which would be created out of RMK loan would continue to be used for various activities of self help groups, in future even after the borrowing organization repays the entire loan to Rashtriya Mahila Kosh.

7.  Where the on lending of the loan is made to the self help groups by the NGO/IMOs the assets created out of the loan will continue to remain in the same of the self help groups.

Insurance

The borrowing organization has to ensure adequate insurance cover of the movable properties/assets which will be created out of RMK's loan.

Repayment

To be repaid within 36 months in 8-10 quarterly installments with an initial gestation period of 6 months.

Margin

 The organization is required to contribute a margin of 10% of the total working capital term loan to be availed form RMK.

Disbursement

To be disbursed in two installment (50% each) depending upon satisfactory utilization of loan.

Monitoring

Like other schemes there will be one pre sanction monitoring and one post monitoring to be conducted by RMK to evaluate the loan proposal/utilization of loan.

Eligibility  : Other eligibility norms remain the same as mentioned in the table I above.

F. Franchisee Scheme

This scheme is for providing  bulk finances to Intermediary organizations, MFIs and NGOs. Under the Scheme, responsible agencies are appointed to undertake RMK activities in a franchisee mode. The application has to be sent to RMK in the prescribed proforma with all the documents as prescribed. The proforma is available on the website. 

Eligibility Norms

a)  The NGOs/SOs/VAs should have broad based objectives, serving the socio economic needs of the community especially the women & weaker sections.

b)  The Organizations should have necessary flexibility and professional competence, basic financial management capacity & organizational skill to implement the lending programs.

c)  The office bearers of the NGOs/SOs/VAs should not be elected members of any political party.

d)  The NGOs/SOs/VAs should have a proper system of maintaining accounts which should have been audited & published every year and there should not have been any serious irregularities.

e)  The organization should be registered for atleast 3 years as on the date of application to RMK.

f)  The NGO should have successful track record for a minimum period of 3 years in implementation of RMK scheme or similar schemes.

g)  The application form should clearly reflect the source of funds utilized earlier for credit.

h)  The recoveries of loan should be of high order (of at least 90% of its due.)

i)  There should be adequate infrastructure & staff to implement micro credit program.

j)  There should be proper & specific clauses in the bylaws/Memorandum of Association of the organization having power to borrow from any outside agency.

k)  There should be an appropriate reflection in the organization audited accounts and balance sheet in respect of its experience in providing credit and recovery., Audited account should reflect sound financial strength.

Maximum Credit Limit :  ` 5 crores.

1. To be eligible for credit limit above ` 1 crore, the NGO should have availed of minimum ` 2 crore loan under Micro Credit Scheme of RMK/SIDBI/NABARD /Commercial Banks/Other Financial Institutions.

2. To be eligible for credit limit upto
` 1 crore, the NGO should have availed of minimum ` 1 crore loan under  Micro Credit Scheme of RMK/SIDBI/NABARD/Commercial Banks/Other Financial Institutions.

How does a Franchisee Function?

Franchisee is authorized to accept applications on behalf of the RMK, do preliminary scrutiny, conduct pre-sanction study by the identified monitors or their own officers and sanction loans to the eligible applicants as per the existing norms of RMK.

The franchisee will then sanction, disburse the amount, accept disbursement certificates, utilization certificates etc, conduct post-sanction study and release subsequent installments as per the existing procedures. Besides sanctions and disbursements, the franchisee will also undertake responsibility for recovery and follow-up action of loans disbursed by them/ RMK.

Note:

Organizations eligible for Franchisee Scheme / any other schemes of RMK may avail facilities under both the schemes. While loan availed under Franchisee Scheme would be utilized for on lending to other NGOs, loan availed under other schemes of RMK would be utilized for on lending to the SHGs developed by the organization exclusively.

The application has to be sent to RMK in the prescribed proforma with all thee documents as prescribed. The proforma is available on the website of RMK. 

G. Re-finance Scheme for Mahila Cooperative Banks/Urban Cooperative Banks

This Scheme is for providing 100% re-finance assistance to Mahila Cooperative Banks & Urban Cooperative Banks which provide financial assistance to the urban/ rural poor women living below poverty line.  The normal terms & conditions of RMK loans in respect of unit cost, repayment period and rate of interest are applicable in such re-finance. The application has to be sent to RMK in the prescribed proforma with all thee documents as prescribed. The proforma is available on the website of RMK. 

Eligibility norms

Re-finance is available only for financing poor women in areas which have not been covered by any other financing agency or the women have not availed assistance under any other Government supported/subsidy scheme.

Eligible criteria

1.  The bank should have been registered for at least 5 years at the time of applying for re-finance.

2.  The bank should not have been making any losses as per its audited balance sheet for the previous 3 years.

3.  There should not be any major adverse remark in the Audit Report of the bank in the previous 3 years.

4.  Recoveries of loans by the banks in the previous 3 years should be of a reasonably high order.

Upper ceiling for re-finance

Total re-finance to any Mahila/ Urban Cooperative Bank at any given time will not be more than 4 times the "Owned Funds" of the bank as reflected in its balance sheet of the previous year.


H.
Nodal Agency Scheme

The Nodal Agency (NOA) Scheme was introduced  in the year 1996-97 with the objective of taking help of reputed and experienced organizations, which may not necessarily be borrowing partners of RMK, for identifying and assisting new NGOs to eventually link-up with RMK for extending credit facilities to women for their income generating activities. The application has to be sent to RMK in the prescribed proforma with all thee documents as prescribed. The proforma is available on the website.

   Salient features of the Nodal Agency Scheme (as approved by the Governing Board, RMK in Jul '13) are as under :

  • The NGO / IMO implementing the Scheme would be designated as Nodal Agency (NOA)
  • The person undertaking the work of Rashtriya Mahila Kosh in the Nodal Agency Scheme would be designated as Nodal Officer (NO)

 Eligibility –  

1.   NGO/VO/VA should have Experience in Women empowerment activities / Micro-Credit activities for minimum 5 years.

2.   NGOs/VOs/VAs should have adequate infrastructure & training capabilities.

3.   Defaulting NGOs/VOs/VAs would not be considered. 

4.   NGOs/VOs/VAs should have experience with resource personnel to handle the required activities.

5.   NGOs/VOs/VAs should have solid financial base.

6.   Interested organizations must register themselves with Planning Commission so that they are included in its website.

  The Nodal Agency is expected to perform the following work:  

        i.      To market RMK’s various loan schemes in uncovered / marginally covered area of the state.

        ii      To identify potential NGOs & mobilize quality loan proposals from the NGOs who have already gained experience in formation/ promotion of SHG / JLGs, mobilization of savings, internal lending & recovery management

        iii.      To help in organizing programmes on awareness generation cum capacity building of NGOs / SHGs /JLGs in different regions.  

        

        iv.      To organize meetings. seminars / workshops / training in area of operation on behalf of RMK.  

   

        v.      To guide / mentor and follow up loans proposals and facilitate recovery of loans given by RMK.

 Other Norms:

        vi.      Nodal Agency may appoint a dedicated Nodal Officer amongst their staff. No remuneration will be paid by RMK.

        vii.      Nodal Agency has to sign a MoU which will be valid for 2 years.

        viii.     The agency would be entitled to receive performance based incentive equal of 1 % of the total loans disbursed out of the sanction made by RMK upon its recommendations and 1 % on recovery of the loans thereof, if loans are repaid as per repayment schedule.

        ix.       An amount upto ` 1 lakh for a day long programme is admissible for conducting awareness meeting / training / seminar / camps etc. as decided on case to case basis and as per actual expenditure.  

   I.   Awareness Generation 
   J.   Capacity Building & Skill Upgradation 
   K.  Marketing Linkages 
   L.   Entrepreneurship Development 

 Information - Education- Communication (IEC) Scheme

ac2s1.jpg (62478 bytes)                   Sometimes, the financial intermediation role may be in conflict with the market development role of an apex micro-finance organization. The objective of funding agencies and donors is often rapid disbursement of funds due to pressure of targets or policy goals. However, there is a constant danger that such target oriented short sighted disbursement pressures may (a) lower standards of credit worthiness (b) reduce the incentive for IMO improvement and (c) conspire against the market development role. In other words,  the short term interests of rapid disbursement can swamp the long term sustainability of the apex organization.

 

To avoid this,  Rashtriya Mahila Kosh (RMK) was set up as an independent organization, governed by its Board of Governors, to protect it from undue pressures from donors and IMOs.

 

From the start, RMK has been concerned with its sustainability. Its policies have been carefully developed accordingly. There is no subsidy element in its interest rate. There are strict criteria for selection of IMOs. There is a strict system of pre-sanction and post-sanction studies of the IMOs and the Self Help Groups (SHGs) before sanctions and releases are made. The stability of SHGs is a basic criterion which is looked into before loans are extended. RMK has adopted a demand driven rather than a target oriented approach to its loaning activities.

 

RMK gives as much importance to its market development and advocacy roles as to its wholesaling role. RMK’s Information-Education-Communication (IEC) activities, therefore, are a vital component of its programme. This creates more awareness of the micro finance concept in general and RMK schemes in particular. Institution building protects the quality of RMK work and increases its outreach.

 

RMK’s IEC Activity includes both the market development role and the advocacy role- Under the market development role, RMK is currently undertaking :

 

a)    Training of existing and new NGOs and other intermediate level partners
b)    Training of SHG leaders and borrowers
c)    Training of monitors
d)    Training of master trainers
e)    Orientation and Training of Nodal NGOs
f)     Training of Govt. officials and workers (like ICDS/IMY staff) engaged in group dynamics, poverty alleviation schemes and income generating programmes
g)    Awareness workshops for existing and potential intermediate organizations and women at large
h)    Contacts with media and media visits
i)     Exhibitions and Fairs
j)     Training of RMK’s own staff and officers and participation by RMK’s officers in national and international level conferences etc.

 

In the near future, RMK also plans to undertake :

 

a)    conducting impact studies and feasibility studies
b)    skill training of women
c)    enterprise development training of women and NGO staff
d)    product and market development
e)    development of data bases and trade related information systems
f)     acquisition of computer and institution of Information Management System

As part of its advocacy role, RMK is organizing :

a)    seminars/workshops with government, banks, foreign funding institutions, apex organizations, intermediate organizations and women for development of policy
b)    continuous interaction with the Ministry of Women & Child Development and other Ministries of Government, State Governments, RBI and NABARD, etc.

The aim is to bring in larger numbers of new and small intermediate organizations into the RMK fold to increase its outreach, specially in under covered areas. This is to be done by reorientation, training, capacity building and technology transfer.

RMK delegates the following functions to well-established, tried and tested NGOs/ reputed Govt. organizations which possess the necessary infrastructure and experience in group dynamics and micro-finance : identification of potential NGOs, pre-sanction studies, training, monitoring and processing of applications upto the stage when the new intermediate organisation can be linked directly with RMK under its loan schemes and other capacity building training programmes.

b) Concept and Features of Self Help Groups (SHGs)

  The National Credit Fund for Women or the Rashtriya Mahila Kosh (RMK) has found SHGs to be very useful in generating savings, in the successful delivery of credit to individual women and in effecting recovery.

The essential features of these SHGs are :

     i)  they are cohesive, homogenous and based on affinity
    ii)  they are small (between 10-20 women in each group)
    iii)  they are voluntary
    iv)  they are stable
    v)  they have a democratic mode of functioning and decision-making
    vi)  they have been given the requisite training in maintenance of accounts
   vii)  they combine social and economic objectives
  viii)  they are owned and managed by their own members - (if institutions who lend money to them or NGOs who promote them, become too involved in their management, they will subvert the autonomy and independence which are their main strengths - promoters and lenders must err on the side of doing too little rather than too much)

Throughout the country, it has been found that functioning in a group gives the poor and often illiterate women more confidence - they are able to undertake decisions and activities which they would not have been able to do singly. The peer pressure is very useful for recovery and is RMK’s best collateral.

Experience also shows that groups can also be the means for members to acquire other skills they need like learning how to read and write. Since some form of group organisation is necessary for adult literacy training, the SHGs have often facilitated this. If members learn as well as save together, the group is stronger for both purposes, and achieve educational as well as economic goals.

IEC Activities

Training, Workshops & Awareness Programs:

The following are the list of training programs / workshop / seminars and exhibitions which took place during the year 2012 - 2013 :-

S.No. Name of the State

Date

Training
1 Guwahati 25.06.2012 - 29.06.2012 Orientation training on Micro-finance & Income Generation issues at NIPCCD
2 Bangalore 06.08.2012 - 10.08.2012 Orientation training on Micro-finance & Income Generation issues at NIPCCD
3 New Delhi 01.09.2012 -03.09.2012 Global conference on Trade Liberalization and its Global impact on Women Entrepreneurs. 
4 New Delhi 01.09.2012 - 07.09.2012 Awareness about Nutrition amongst members of SHGs of poor women organized by Food and Nutrition Board 
5 Indore 17.09.2012 - 21.09.2012 Orientation training on Micro-finance & Income Generation issues at NIPCCD
6 Lucknow 08.10.2012 - 12.10.2012 Orientation training on Micro-finance & Income Generation issues at NIPCCD
7 New Delhi 12.11.2012 - 19.11.2012 Stalls at Vatsalya Mela, Dilli Haat, New Delhi for Marketing cum Exhibition of SHG products
8 West Bengal 04.01.2013 - 13.01.2013 RMK - partner NGOs participated in Banga Sanskrit Utsav at Nadia  
9 New Delhi 07.01.2013 - 11.01.2013 Orientation training on Micro-finance & Income Generation issue at NIPCCD 


                                                                                              
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