As per the RBI Circular vide.no RBI/2010-11/505 RPDC.CO.Plan.66/04.09.01/2010-11 Dt- 03/04/10, BISWA has decided to revise its loan policy as under :-

The loan is to be extended to a borrower whose household annual income in rural areas does not exceed RS 60000/- while urban and semi-urban areas it should not exceed Rs 120000/-

1. Minimum loan to an individual borrower in first cycle will be Rs 5000/- and the upper cap for and individual will be Rs 50000/- maximumin the subsequent cycles.
2. Tenure of the loan :
   • (Rs 5000/- to Rs 10000/-) for 12 Months.
   • (Rs 10001/- to Rs 15000/-) for 18 Months.
   • (Rs 15001/- to Rs 50000/-) for 24 months.
3. Loan to be repaid on monthly instalment.
4. The loan is collateral.
5. The rate of interest is 24% per annumto be calculated on a reducing balance basis.
   Loan Processing Charges(LPC) is 1% on gross loan amount ( To be collected upfront at the time of disbursement).
6. No stationary charges to be collected from SHG's.
7. Insurance of the clients will not made by BISWA, it will de done by separate company and BISWA will acts as a service provider for the client to insure/enrolled them under social security measures.
8. BISWA will not collect penalty on delayed payment.
9. Interest on existing loan will be calculated @ 24% per annum in reducing balance method frm 03.05.2011. Letter along with the revised repayment schedule will be provided to the clients.

Note: The above charges will be effective from 03.05.11 for all loans. The policy as mentioned in the "Operational Manual" will remain unchanged except the above.