Scheme features & terms
Financing under these categories is provided to individual members as well as self help groups of members, on the basis of sharing the net benefits as well as the actual risk/loss.
The maximum period of assistance is normally 5 years.
Maximum assistance is 80% of the project cost, the balance contributed by the applicant, limited to Rs 5 lakhs. Assisted machinery etc. remains hypothecated to Sanghamam until fully repaid.
Repayment is in easy instalments fixed with regard to the nature of each project and the member's repaying capacity — daily, weekly or monthly — and Sanghamam arranges timely collection. Instalments of predetermined income/benefit are collected along with the assistance instalments.
At the end of each 3 months (or other practical interval), Sanghamam's share of income/benefit is recalculated on actuals and adjusted.
Sanghamam considers only risk or loss incurred for reasons beyond the member's control despite due care and caution.
Sanghamam may inspect and verify records, stock and properties of assisted projects at any time and give advice/directions that the member shall adhere to.
Security for assistance up to Rs 1 lakh: personal surety of the applicant and two ordinary members (for self help groups, the personal sureties of all group members); and/or pledge or hypothecation of machinery, equipment, furniture and fittings; and/or pledge of gold owned by the applicant along with personal surety.