Anandadhara

West Bengal State Rural Livelihoods Mission (WBSRLM)

(A Societyunderthe Panchayats & Rural Development Department. Govt.ofWestBengal)
Ref No. 2s0 (23) /WBSRLM/Prog/6P-138/2015 Dated 06.04.2022.

From: Smita Pandey, I.A.S,

State lission Director & Chiet Executive Officer,
West Bengal State Rural Livelihoods Mission,
Govt. of West Bengal.
To: Additional District Mission Director, Anandadhara cum Project Director, DRD Cell,
Alipurduar, Bankura, Birbhum, Coochbehar, Dakshin Dinajpur, Darjeeling(GTA),Hooghly, Howrah,
alpauguri, Jhargram, Kalimpong, AMalda, Murshidabad, Nadia, North 24 Parganas, Paschim Bardhaman,
South 24 Parganas, Uttar
PaschimMedinipur, Purba Bardhaman, Purba Medinipur, Purulia, Siliguri,
Dinajpur.
& streamlining of CIF management practices at SHG Federation
Re Strengthening
level through SRLM Revised CIF Lending Norms for 2022-23.

Sir/Madam,
In connecion with the above referred matter, please note that coverage of SHGs under CIF loans stands
at 22% of the total SHGs as on March 22, which is inadequate by any standard. Since CIF is primarily
meant to be provided to SHGs, through the Sangha Samabay, in order to streamline the lending process,
we have revised the norms as under, which may be implemented by all the Sanghas meticulously.

1. Maximum permissible CIF loan limit is increased from Rs.1.10 lakh per SHG to Rs.1.50 lakh,
vide MoRD advisory under reference no.J-11060/23/2018-RL (E-362494) dated 25.11.2021
SHGs who have already availed a CIF loan of Rs.1.10,000/- or less may be sanctioned top up
loans upto the maximum limit of Rs.1.50,000/- with immediate effect.

2 Target: 100% eligible SHGs under the Sangha Samabay, instead of earlier 50% of total member
SHGs.

3. Rate of interest: Member to SHG : Keeping the MoRD guidelines in mind as well as field
realities in the State and in order to maintain uniformity and also to ensure CIF as a soft loan, we
hereby advise the SHGs to charge the following rate of interest to the SHG members who will
take CIF loans from SHG.
Loan limit upto Rs.5000/-: 6% p.a.
Loan limit from Rs.5001/- to Rs.10,000/-7% p.a
Loan Limit from Rs.10,001/- to Rs.15,000/-9% p.a.
Loan limit above Rs.15,000/- 10% p.a.
SHGto Sangha Samabay Sangha Samabay will charge interest at an uniform rate of
interest of 6% p.a. across the State for this year, to allow the SHGs to earn a handling
charges as income.

4. Time gap of loan sanctioning: Sangha should sanction the CIF loans within 15 days from the
date of receipt of loan applications trom the member SHG.
 instalment upto 24 months,
Maximum monthly
5. Repayment
Schedule : Member to SHG: may be applied.
maximum
instalment
monthly of 36 months
SHGto Sangha :
SHCGs may be
preparation of MCP,
To facilitate casy & prompt
6. Preparation of MCP/MIP: format circulated
under reterence no.

MoRD approved 1 page

allowed to prepare the per
same as

J-11060/48/2015-RIL dated
30.10.2015 (Copy enclosed).
Application Received
Loan l.edger for CIF loans, DCB Register,
Books of accounts, for example, Loan
7.
the BOD allowing the CIF loan,
Mecting
Register, Cheque Register, Minutes of
Issue be maintained and
etc are to
Sheet
Loan Documents & Processing
Application along with MIP, no.572(23)/WBSRLM/Prog/6P-138/2015
cdated
refer letter
preserved properly. (Kindly
10.08.2020)
in April every year.
8. Internal Audit of the Sangha Samabay should be completed
from the
month at least 5 Sanghas are inspected
9. ADMDs are requested to ensure that in a
least 2
followed or not, with at
district to ensure whether all the above norms are being
fluidity in the
to be done in person by the ADMDs. This will not only ensure

inspections
fiscal health of the Sanghas.
fund flow but also bring about positive changes in
Co-ordinators, and Sangha leaders
Districts are requested to keep all field functionaries, Sangha
informed of the above CIF lending norms for this year for meticulous compliance.

Yours faith fully,

n2
State Mission Director & CEO.

Enclo;as stated

Anandadhara State Office: Panchayats and Rural Development Department, Joint Administrative Building, 10th Floor,
Block HC-7, Sector-11, Salt Lake, Kolkata -106, Phone: 033-2367 3741/3731/3711/3721; Fax: 033-2367 3741: Email:
wbsrlm@gmail.com
 Nu -1 18e 23 2018-RL (E0494
Goverament of lndi
Ministry of Rural Devedopmeat
Degartment of Rural Developament
Knsti Bhavan, \eu
aed the \onember

All the SUDs oE Sates

investment
Proritizing the disdursement of rexolv ing fund and community
funds te SHG and Federatioas

Dear Macam Sir.

SHG memoers rereive ioans iro te a n situtins should not CAT

m
me

May h s Mini adi

Prowide mmuriy eSUTme 10 2kh per SHG or non-N

and Assam and Rs. 150 k SH
SHCs This are has Deen corsidered

NRLM a s gone ur subsantd s may eISE

orms foe CIF t dhe SHCsorde sre
comImunity usticutiCstS I I t r mu
Rs. 50 dkt per SHG 100a cSHCs Therevn in nimms ma
view the dle funds availate with the c m m utians

vailabiity in he S e under DAY-\RLM.

The Sres may also proidie top up funds tn all

e CIF Csbursemene o Federations inc dsturs i nty t

SHC Scare Missions must ensure d sbursemenE of tunts 20 SHC and Federaiions on ihe
DAY-NRLM fund disbursement moduk (FD\M) as this is mandator .ci
I" April. 2021. MaTet Cnd otmE OÍer ot disha
ataRF. CF. i t
R

ppreved ua Acicn Pla AP F 2

orrlease ci RF and CIF. ifreirrd. HenEi. the CIF bE ng e
ivelhocd activics orwhich che c o Cr:: Piars s2 reed to be revised

r s a.

lees
Alka Upadhaa
Additionz! Seeretary to Govergnentof India
Anandadnara
Rural Livelihoods Mission (WBSRLM) V
West Bengal State
(A Soclety underthe Panchayats Rural Devclopment
Department,.Goyt,of West Rengal)
Dated 10.08.2020
Ref No 572 (23/)WBSRM/Prog/6P-138/2015.

IProm: Sri Soumyajit LDas, WBCS (Exe)

State Mission Director & Chief Executive Officer
&

Jt. Secretary, Panchayats & Rural Development Deptt,

Govt. OfWest Bengal.

To:Additional District Mission Director, Anandadhara-cum PD, DRD Cell, Kalimpong/Nadia/

Burdwan/Coochbehar/Dakshin
Dinajpur/Darjeeling
Alipurduar/Bankura/Birbhum/Purba Murshidabad/North 24
Hooghly/Howrah/Jalpaiguri/Malda/
(GTA)/Siliguri MP/ 24 Parganas/Uttar
Medinipur/Purba Medinipur/South
Pargana/Purulia/Paschim
Dinajpur/Jhargram/Paschim Bardhaman.
for recording
be maintained by the Sangha Samabay
e Documents & Books of Accounts to
CIF loans to the SHGs.
Madam/Sir, maintain Documents&
Books of
Samabay should
t s of
utmost importance that Sangha it comes to o u r
the loaning activities under CIF. Sometimes,
accounts very meticulously for recording due to which irregularities
noice that proper documentation for
CIF loan is absent in certain Sangha,
Micro Finance Operation by
we are enclosing
herewith the "Hand Book for
crop up. Once again, the Sangha Samabay
to be followed by
Bengali) to take note of the operational guidelines
Sangha"(in
while extending CIF loans to SHGs.
SHG, the following Documents preserved in a file,
should be
For each & every CIF loan to an from
official visitüng the Sangha
segregated for each SHG
account in a systematic manner, and any
is noticed for
the Documents and point out if any shortcoming
Block/District/State should verify
immediate rectification. The Ledger & Registers are also to be preserved in a systematic manner
Annexure number in the
SI Documents/Particulars
Hand Book.
Sheet. Annexure-5
CIF loan application to the Sangha with Processing :
1
Summarised MIP prepared by SHG Annexure-4
2
Latest Grading Sheet of the SHG Annexure-1
Resolution of SHG to get Loan from the Sangha Samabay: Annexure-3
4
the SHG to the Sangha Annexure-7
5 Pro-Note for the CIF loan by
Samabay.
Loan Applications Received & Disposal Register. Annexure-6
6
7 Loan Disbursement Register Annexure-8
Loan Ledger ( maintained SHG wise) Annexure-12. Page no.88 in
8
Amader Pratisthan
9. Demand Collection Balance Register Page No.92 in Amader
Pratisthan

Sancha Co-ordinator, Area-Coordinators, CSP-Fund Management, are also to be advised adequately to

ensure that Sangha Samabay prepares & preserve the above referred Documents/Registers for the CIF
loans and keep them updated. You are requested to issue a similar guideline to all Sanghas in local

vernaculars accordingly for taking suitable action from their level.

Yours faifully,

Enclo: as stated
SMD & CEO. WBSRLM

Anandadhara State Office: 10th Floor, Joint Administrative Building, Side A, HC-7, Sector II, Salt Lake, Kolkata -
700106. Phone- 03323353721 Email: wbsrim@gmail.com
 344711
File No: J-11060/48/2015-RL
Ministry of Rural Development
National Rural Livelihoods Promotion Society
(NRLPS)
6h Floor, fHotel amrat.
Chanakyapuri. New Delhi
Dated:- 30 October, 2015

To

The State Mission Director/CEOs,

State Rural Livelihoods Mission
All States/UTs

plan micro-
Subject: Simplification of MCP (microcredit plan, micro-investment or

plan) at SHG level to avail CIF and/or Bank L0an.

Sit
Several States had raised the issue of complexity in the MCP procedure under NRLM,

leading to delays in disbursement of CIF to SHG/Federations. Accordingly, a consultation

was

held on the issue with a few states in Delhi on 15 - 16" September, 2015. Based on the
discussions, a revised advisory on the MCP procedure has been developed and is attached
herewith. Please note that this is an advisory and may be customized by SRLMs as per their

requirement.

Encl: As above.

Yours Faithfully.

(Nita Kejrewal)
Director (A&F)
Copy to:

Shri G. Muralidhar, Head, IC/CB

 Micro Credit Plan

to capture and prioritize

Micro Credit Plan (MCP) is a tool used by Self Help Groups (SHG)
(MIP), Micro Plan (MP),
their credit needs. MCP is also referred as Micro Investment Plan
federation
MCP the Cluster level
Micro level/Family livelihood Plan etc. On the basis of the
loans including loans from Community
(CLF/ village organisation (VO)/Banks disburse the
is a bottom up plan prepared by
Investment Fund (CIF), to the SHG. Micro Credit Plan
needs. It is a family/household
SHG members for various credit/investment/livelihoods
skills, resources, experiences
their existing
investment plan developed by them based on
includes SHG profile,
them.The MCP process
and the opportunities locally available to
household level planand
member profile, income-expenditure analysis,
and rotation amongst SHG-
consolidatedhousehold plan at SHG level,appraisal, prioritization
other external loan, they
Vo-CLF. Every time the SHG wants to avail new CIF/Bank loan/any
for taking
MCP/MIP/MP. This plan can also be conducted/aggregated
may conduct
of SHGs.
collective interventions and meeting other needs
up/facilitating convergence,
is revised as
Based on the experience over the past 4 years, the MCP/MIP/MP process
follows after consultations with the states:

Processes:
Revised Indicative MCP/MIP/MP/Livelihood Plan

.
Eligibility of SHG for MCP/MIP/Livelihood Plan
SHG should be at least 6 months old
SHG must be "A"or "B" grade.
Plan
2. Prerequisites for conducting the MCP/MIP/Livelihood
Updated SHG profile updated by the
-
Bookkeeper.
Active Women or
Women
Updated Socio-economic profile of members-updated by the Active or

Bookkeeper.
Member-wise lncome and Expenditure statement For SHG members to
understand their situation on their own they need to prepare member-wise
statement of Income and Expenditure. t helps the members to analyze their own
so that the members can plan their investments
patterns of income and expenditure
and reduce their expenditures etc. During the first 3-5 months itself, this analysis can
be done for each member of the SHG in the regular meetings of SHG, to appreciate
each other's socio-economic situation. Active Women/Book Keeper could take up
this facilitation process.
The above 3 steps should be completed prior to MCP/MIP/Livelihood plan
preparation. These processes should be facilitated by the Active Women/SHG
Bookkeeper and may be completed during the SHG meetings itself within the first 6
months of the SHG formation
Apart from the above 3 steps, a situation analysis of the village should be completed
by the members of the SHGs in the village and important stakeholders of the village.
A prior village level planning exercise done would feed this analysis. This analysis
include Social and Resource mapping of the village, village livelihoods mapping,
Traded-in Traded-out and identification of opportunities available in the village etc.
SHG must be oriented on MCP preparation.
 --

3.MCP/MIP/MP/Livelihood plan Process

3 . 1 Member-level Plan
O I h the meeting of the SHG on Day 1, based on the village analysis and the

members would be
income-expenditure analysis conducted earlier, the
facilitated to develop their individual plans.
hese plans would be fine-tuned through discussions amongst the SHG

members.
individual plans, which
O A t the end of the day,the members would have draft
they can take up for discussion with their families.
3 . 2 Finalisation of individual plans and consolidation of SHG plan
members confirm or make any changes in their
O In the meeting on Day 2, the
plans in the meeting.
would
O Repayment terms and rotation schedule of
the loan amount to members
be discussed and included in the MCP/MIP/MP/Livelihood plan.
consolidated at the SHG Ievel.
o The final individual level plans would be
order
members and ranks them in the
o The SHG then prioritises the loans to the
of giving loans to them.
3.3 Appraisal
is presented to the
o In the same meeting, the MCP/MIP/MP/LP prepared
to the SHG
representatives of the Village Organisation (VO), speciallyinvited
meeting, or other SHG leaders (if the VO is not there), for appraisal and approval.
MCP would be revised based on the appraisal.
is signed by all the members
o The final appraised and approved MCP/MIP/MP/LP
revised MCP/MIP/MP template is at
of SHG, the leaders and the facilitators. A
Annexure-1.
to the
o A copy of the MCP/MIP/MP would then be presented/submitted
Vo/CLF/Mission (BMMU)/Bank to avail loans/CIF.
in the minutes book of SHG.
o The MCP/MIP/MP process would be recorded

4. Post MCP/MIP/MP/Livelihood planning

4.1 Fund release

and approved MCP/MIP/MP, the VO should release funds

Having received the appraised
send an indent to Cluster level
within week. If the VO doesn't have funds, it may
a

federation (CLF) or BMMU (In the

absence of CLF) to release CIF funds in bulk repayable

to CLF.

CLF in cluster can be computed based on the target

The total amount of CIF for a a

for transferring the entitled funds

population of the cluster and the following provisions
be made.
in advance to the Institutions of
Poor can

o CIF can be released to the SHG in the absence of VO.

o If VO is in existance:
CIF entitlement of the VO minus
5 0 % of the entitlement of the VO (Total
should be given to the VO.
the CIF amount already disbursed to the SHGs)
 *
months after the first installment, the remaining entitlement
amount would be
given to the VO as next installment.
Triggers for release of Funds to VO:
Formation of executive committee of the VO.
VO should have its
oin the
own Bank Account.
presence of CLF:
O n c e CLF is formed and has a separate Bank account CIF should not be

released to VOs directly

*The undisbursed CIF amount (after releasing the first/2nd installments to
SHG/VO) if any, should be given to the CLF
4.2 Rotation
Once the CIF is released to SHGs, SHGs may release the same to members as per
the prioritization in MCP. Repaid amount should be rotated among the members
of SHGs according to the prioritization plan.
Once the CIF is repaid to the VO, the same amount should be rotated among the
SH6s of that VO.
o Like wise CLF also should rotate the repaid amount among the VOs

5.Aggregation of MCP/MIP/MP/Livelihood plan:

MCPs should be aggregated at VO/CLF Ievel and SHGs/VOs should be prioritized for
release of CIF.
MCP data should be aggregated at the VO and CLF level to analyze the livelihood
needs, convergence needs and capacity building needs. Collective interventions can
be planned based on the aggregation of MCP/MIP/MP

Note: The above MCP process is indicative and SRLMs may revise it according to the
suitability of the specific requirements of the states.
 Attachment-1: Proposed Format for the MCP

MCP Format
SHG Name:
VO Name: SHG Profile Y/N
Village Name: Y/N
Gram Panchayat Name: SHG Member Profile
Block Name: Y/N
Member Income-Expenditure Analysis
Dates for Conducting MCP:
Village Resource/Livelihoods Analysis Y/N
No. of Signature of
S. Names of the Purpose Total Loan Expected Priority/
No Members of the of Loan Loan Rotation Instalm the
Amount
ents Members
SHG Required amount

inRs.) (CIF/Bank...
1

10

11

12

13

14

15

Details of Group level Activities:

Any other Needs:
(Convergence, Vulnerability, Training etc.)

Signed by SHG Leaders:

President/Leader 1:
Secretary/Leader 2:

Appraised and approved by Other SHG Leaders or VO Office Bearers:

S.
No Names of the Leaders Leadership Position
Name of the SHG Signature
Held

4.

Faciliated by Facilitators and Mission Staff of SRLMinvolved, if any:

S.
Name of the
No Position
Facilitators/Mission Staff Signature

1.
2.
3.

4.