To increase accessibility of poor farmers to formal financial services, the bank in 1998 introduced Group Guarantee Lending and Savings scheme. Under this scheme the loans are given to individual group members on the guarantee of other group members.
The group can be homogenous where all members are of same sex or heterogeneous where both male and female members can be in the same group.
A group should have minimum of 3 and maximum of 7 members. Only one member per household can join the group scheme. A household here is defined as number of people living and dining under the same roof and shares the benefits and costs.
Maximum of Nu.300,000 (Three hundred thousand) per member subject to the viability of the proposal, repayment capacity, past track record if credit was availed before and endorsement from other group members and centre chairman.
10% per annum calculated on a diminishing balance method which may be revised from time to time.
Maximum of 5 years.
The loan repayment frequency can be weekly, monthly, quarterly, half yearly or yearly as per the cash flow timing (project income as well as other income sources) of the members.
Every member should open an ICSA and deposit Nu.100 every month till the dissolution of the group.
For Vegetable Vendor Group, Micro Enterprise Loan (BCCI scheme) and other specialized group, the members shall deposit Nu.500 every month till the dissolution of the group.