RGVN Microfinance Bank

RGVN Northeast Microfinance group is a registered NBFC, serving the microfinance needs of self-help groups, and entrepreneurs in the northeast region of India. The group facilitates excellent access to healthcare, education, and livelihood opportunities for the local population.

With its headquarters in Guwahati, the RGVN Northeast Microfinance group is spread over Assam, Meghalaya, Nagaland, Sikkim, and Arunachal Pradesh, and disburses its microfinance initiatives through its 121 offices across these regions. It has one of the best recorded on-time honoured repayment statistics – standing at 99.71%, for a total loan outstanding of Rs.326 crore, disbursed to over 2,57,000 borrowers. This is truly a testament to the borrower-friendly terms on which loans are disbursed, and collected.

RGVN Northeast Microfinance Loans

The RGVN microloans are lent to the local population of these north eastern states so that they can meet recurring, obligatory, and one-time expenses like:

• Money required to pay off bills, etc.
• Funding investment opportunities.
• Pioneering the entrepreneurial wave, and funding entrepreneurs.
• Funding livelihood opportunities through education and establishment of a sustainable production facility.
• To fund marriages.
• To fund tuition.

RGVN Northeast has the following microfinance loan products

RGVN Northeast Microfinance Self-Help Groups

• Loans are disbursed to women who wish to take on small business activities, or agricultural activities, trade, etc.
• Credit officers survey a designated area for people with the potential and drive to do something productive.
• Once they identify these people, a group of 10 – 12 members is formed.
• The group is informed about the loan, its terms and conditions.
• The group is educated on matters relating to maintaining a savings register, book-keeping, noting down minutes of meetings, and is given other general information on how to run their chosen activity successfully.
• A group recognition test is conducted within 60 days in order to assess the capabilities of the group and its members (and to determine the right quantum of finance that needs to be disbursed). The test is designed to address the issues of:
  • Mobilizing savings.
  • Group cohesiveness and discipline.
  • Qualitative assessment of leadership.
  • Qualitative assessment of record keeping and accounting ability.
  • Qualitative assessment of the members’ participation.
• Loans are disbursed through account payee cheques.
• Maximum ceiling for the 1^st cycle is Rs.15,000 per member.
• Maximum limit of loan is Rs.50,000 per member.
• Administrative charges are levied at the rate of 1% of the loan amount.
• Interest rate:
  • Assam: 25% p.a. (does not apply for BTAD area of Assam).
  • Other than Assam: 20% p.a.
• Loan tenure:
  • Below Rs.15,000 – 1 year.
  • Above Rs.15,000 – 2 years.
• Upon the successful completion of 3 loan cycles with no dishonoured payments, clients showing entrepreneurial ability will be eligible for the Entrepreneurship Development Loan.

RGVN Northeast Microfinance Joint Liability Group

• This is a contract feature that is added to group loans by microfinance companies.
• Groups of borrowers are individually made liable for each other’s loans.
• A client profile is created by choosing self-employed women in the fields of poultry raising, animal husbandry, petty trade, handloom craftsmanship, handicrafts, and fisheries.
• 5-women groups are created with every member being informed of the joint liability and mutually agreeing to it.
• Eligibility criteria of the women chosen for the group includes:
  • Ability and experience handling funds.
  • Belong to a credit group.
• The groups have no treasurer or leader.
• Members agree mutually, to be individually liable to each other.
• Maximum ceiling for the 1^st cycle is Rs.15,000 per member.
• Maximum loan limit is Rs.50,000 per member.
• Administrative charges are levied at the rate of 1% of the loan amount.
• Interest rate:
  • Assam: 25% p.a. (does not apply for BTAD area of Assam).
  • Other than Assam: 20% p.a.
• Loan tenure:
  • Below Rs.15,000 – 1 year.
  • Above Rs.15,000 – 2 years.

• Repayment frequency: Fortnightly payments are required to be made towards repaying the loan outstanding.

RGVN Northeast Microfinance Entrepreneurship Development Loan (Individual Loan)

• Interested borrowers must satisfy the following requirements in order to fulfil the eligibility criteria:
  • Borrowers under the Self-Help Group (SHG) loan scheme who:
    • have successfully completed three (3) repayment cycles,
    • don’t delay or dishonour repayments,
    • completely fulfil RGVN Northeast Microfinance Ltd.’s terms on repayment,
    • wish to generate or augment an income generating activity on their own
    • are eligible.
  • Borrowers under the Joint Liability Group (JLG) loan scheme who:
    • have successfully completed two (2) repayment cycles,
    • don’t delay or dishonour repayments,
    • completely fulfil RGVN Northeast Microfinance Ltd.’s terms on repayment,
    • wish to generate or augment an income generating activity on their own
    • are eligible.
• Maximum ceiling for the 1^st cycle is Rs.15,000 per member.
• Maximum loan limit is Rs.50,000 per member.
• Administrative charges are levied at the rate of 1% of the loan amount.
• Interest rate:
  • Assam: 25% p.a. (does not apply for BTAD area of Assam).
  • Other than Assam: 20% p.a.
• Loan tenure:
  • Below Rs.15,000 – 1 year.
  • Above Rs.15,000 – 2 years.
• Repayment frequency: Fortnightly payments are required to be made towards repaying the loan outstanding.

RGVN Northeast Microfinance Micro Enterprise Loan (Individual Loan)

• This loan is targeted at men and women who:
  • Possess definite and proven entrepreneurial skills.
  • Own and operate / wish to own and operate their own income generating enterprise.
• Maximum ceiling for the 1^st cycle is Rs.15,000 per member.
• Maximum loan limit is Rs.50,000 per member.
• Administrative charges are levied at the rate of 1% of the loan amount.
• Interest rate:
  • Assam: 25% p.a. (does not apply for BTAD area of Assam).
  • Other than Assam: 20% p.a.
• Loan tenure:
  • Below Rs.15,000 – 1 year.
  • Above Rs.15,000 – 2 years.
• Repayment frequency: Fortnightly payments are required to be made towards repaying the loan outstanding.

*All amounts, tenures, repayment requirements, interest rates, charges, ceilings, requirements, criteria, exclusions, terms and conditions are as of December, 2015. RGVN Microfinance Northeast reserves the right to modify, replace, or add to or subtract from any of the above, in any way, at any time, and at its own discretion.