Financial Services :
Savings :  

Regular savings by the SHG @ 5% per annum
Excess Savings @ 4.5% per annum
Fixed Deposits @ 7% per annum  
  The federation has linked with Life Insurance Corporation to cover life insurance, and New India Assurance Company for Livestock insurance.  
  The Federation has appointed an internal auditor to audit the SHGs and clusters once every six months.  
The Federation provides the following range of loan services to its members:
Long Term Loans:
Cow and irrigation: Loans for cows, buffaloes and irrigation for 24 months.
Infrastructure loan for IGA: Work-shed, Cattle-shed, Equipment/machinery, Vehicles, Shop construction, and similar items
Short Term Loans
Agriculture loans: Loans for seeds, fertilizers, and labor
Service/Trading Loans: Loans for service and trading activities
Consumption Loans: Loans for household consumption purposes
Emergency Loans: Loans for emergencies such as illness and hospitalization
Click here for greater detail on the loans offered by GMSS.

A member can have only one loan outstanding at any point of time, i.e., concurrent loans are not allowed. However, an emergency loan may be given even if the member has an outstanding loan.

Loans are sanctioned in proportion to the total savings of the SHGs in the federation – the regular savings amount and the fixed deposit should be 1/10 of the total loan demand. In case a group does not have the requisite savings deposited in the federation then it is supposed to deposit 1/10 of the loan amount required as fixed deposit a month before the loan is applied. Fixed Deposits are for a 3 - 5 year period.

Service Fees at the rate of 2% of the total loan amount sanctioned is charged

The emergency loan portfolio should be no more than 2% of the total outstanding portfolios at the Branch levels. The consumption loan portfolio should not exceed more than 10% of the total loan portfolio.

Life Insurance is mandatory for all members who take a loan. When a loan is taken to purchase an asset (e.g., buffalo, 3-wheeler) the asset is to be insured.

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