Disbursement to women group

Procedure for drawls of refinance shall be adhered by the Individual Members/Groups with reference to form prescribed sharply indicating clearly the purposes, detail of borrowers (eligible as per RDMMSL's parameters) and the aggregate amount etc., The Individual Members/Group Members will take expeditious steps to disburse funds received from RDMMSL for which a maximum period of:

• Disbursal on same day in case of Village Loans, and
• Disbursal will take time of 10 – 15 days under Society and Special loan scheme from the date of release of funds by RDMMSL will be permissible
• In case of First time loan applies the member in group, the interest rate will be charged as Rs.1.25p after 6 months it will be changed to Rs.1/- . on failure to pay of EMI at EMI date the interest rate will be change to Rs.1.50/- for all the members in group who has the loans

Interest Calculations

• First time loan=Outstanding amount*1.25%(for first 6 months)
• First time loan=Outstanding amount*1%(After 6 months)
• If loan is not paid for the month=Outstanding amount*1.5%(At the time of payment)
• If loan is taken for second time =Outstanding amount*1%

• In case of Individual member when applies for loan the rate of interest on loan amount is Rs.1.50p
• All loans except Village Loan have to issue through Branch level
• Collection of saving amount at filed level have to deposit in branch level
• Meeting expenses “Palakavargam” (Board Expenses) have to file in the branch level
• Saving accounts closing authority up to Rs. 20,000
• Authority to Approval of loan amount i.e. =1,00,000
• DRS Activations and Deactivation based on the member attendance in scheduled meetings (Aggregate should be 4 times have to attend in entire year) Otherwise member should not be eligible for DRS.
• After completion of existing loan only eligible for next loan
• Member Transfers
• Member should close the loan before transfer to Other Group
• Member can transfer the saving account to their family member name
• DRS partial withdrawals allowed only on if the age of member is > 60 years

Disbursement to women group

• Screening of women groups / Individual members by field staff
• Savings and loan payment history of Women groups / members by senior staff

After sanction of RDMMSL loans to women group/member

• The sanction made by the Village Co-Ordinators/Village Presidents shall be recorded in file with the signature of all Loan Committee members.
• A copy of sanction letter shall be communicated to the women groups / members with all the terms and conditions of loan.
• Terms and conditions of the sanction letter should be explained to the Women group/members in local language.
• Signature of office bearers should be obtained on the copy of sanction letter.

After rejection of RDMMSL loans to women group/member

• Any loan application that does not comply with the eligibility norms shall be rejected and the reason of rejection shall be filled with the signature of Village Co-ordinators.
• Rejection reason shall be communicated to the women groups with listing all the reason and they should be motivated for re-application to next time.

Fund release

• A list of women groups/Individual members to whom the loans have been sanctioned by the RDMMSL, will be prepared in the prescribed format by the Village Co-ordinators and loan shall be disbursed through proper channel (in group meeting or in group)
• Transparency should be maintained at the time of loan disbursement
• A printed repayment schedule with the value of instalment should be distributed to all women groups/members at the time of loan disbursement.
• The maximum loan period is 36 months.

Loan Documentation

• Profile of the each Individual/Group member with the amount of loan sanctioned to each borrowers.
• Vouchers from women group - to be signed only by the authorised signatories of the women group.
• Loan disbursement receipt - signed by each of the borrowers for the respective amount loan received by them.

Loan Utilization

99% of RDMMSL loans are given for the purpose of asset creation and income generation activities to women group.

Refund of Unutilised amount of Loan

In the event of the Individual / Group Member not utilising finance, shall refund unutilised amount within Specified days. Any delay in making refund of such amount will carry penal interest @ 12% per annum.

Interest on saving amount

RDMMSL will pay the interest @ 9% per annum on savings of Members