What are the procedures for loan disbursement?
Groups are provided with a loan according to the requirements of the group and the unanimous decision of the group. The amount of loan provided to a group depends on the proper functioning of the group and the age of the group. The loan amount given to groups ranges from 50000 rupees to 300000 rupees. The interest is calculated on declining balance and for the convenience of the groups and the program it is again made flat. The normal interest rate is between 10% and 12%. There are also interest free loans to the groups of people with disabilities and groups of widows. AID INDIA requires the groups to save beyond the repayment of loans. Regular interest rates on loans range from 36% to 150% from banks and private money lenders. The group members are usually unable to receive loans from these facilities as they have no credit history required by banks , and cannot support the crippling interest rates required by private money lenders. We charge (reasonable) interest rates on all loans t
