Frequently Asked Questions in Krishi Vigyan Kendras

Self Help Group

1.  How do I identify an activity which can generate income for the group?
            It should be on cluster approach.  About 10 activities are identified based on the resources, occupational skills of the people and availability of markets, out of which focus is on 4-5 activities which are identified for training and micro enterprises development in a cluster approach for a larger number of groups.  This list of activities then is placed before the general body of the panchayat samiti for recommendation at block level And DRDA/ZP at the district level.  For each by activity there should be a project report indicating various elements such as training, credit, technology, infrastructure and marketing.
2. How much credit will I get in SGSY?
            Financial assistance to swareozgaris under SGSY comprises of two components viz. loan and subsidy.  SGSY is a credit linked scheme and credit is the element.  The major part of investment consist bank credit from financial institutions comprising commercial banks and regional rural banks.  The size of loan for a   project depends on the nature of the project.
3. Who will give us loans?
            Loans are given by the financial institutions comprising commercial banks, cooperative banks regional rural banks.  The loan amount would be equal to the total project cost including the amount of subsidy.  Interest rates for loans will be as notified by RBI / NABARD from time to time.

4.  How much of subsidy I will get?
            Subsidy under SGSY will be uniform at 30% of the project cost, subject to a maximum of Rs. 7500/-.  In respect of SC/STs and disabled persons, however, these will be 50% and Rs. 10,000/- respectively.  For groups of swarojgins (SHGs) the subsidy would be at 50% of the project cost subject to per capital subsidy of Rs.  10,000/- or Rs. 1.25/lakhs, whichever is less.  There will be no monetary limit on subsidy for irrigation projects.

5. When do the SHGs become eligible for getting bank loan and subsidy?
            SHGs that are in existence for about six months as grade-I and have demonstrated the potential and a viable groups become group-II as per the stipulated norms are eligible to receive the assistance for economic activity in the  form of bank loan and subsidy.

6. How do I improve the quality of my product?
            Each DRDA is given separate funds for improving the marketing support to SHGs for their rural products which includes among other things fie up with reputed institutions for improving the quality of products, branding and packing.  Besides, during the SARAS Fairs, rural swarozgains are given the opportunity to participate in the workshops conducted by eminent institutes organized by the ministry in quality improvement of the products, packaging, accounting etc.,
7. Whether landless farmers can avail agricultural credit under revolving credit scheme?
            Yes, agricultural credit under revolving credit scheme can be availed against personal surety, guarantee or any other collateral acceptance to banks.