1. Matching Grant
Matching grant is an incentive amount given by Kudumbashree to the neighborhood group to encourage small savings and avail credit facility. Bank
A matching grant of 10 percent or a maximum of Rs. Neighborhood groups with 50 per cent or more SC/ST members will get matching grant even in the absence of linkage loan. This amount will be paid to the members.
2. Interest subsidy
Neighbor groups who have taken bank loans only need four percent interest on their loans up to Rs 3 lakh. This is because interest subsidy is available up to a maximum of 8.5 percent. Banks grant loans according to the savings limit of the neighborhood. Loans from April 2016 onwards have interest subsidy. This amount will be disbursed as loan to the neighborhood group members.
3. Revolving Fund
Revolving Fund is a financial assistance provided to strengthen the lending activities of the neighboring groups.Revolving Fund provides a maximum of Rs.15,000 as revolving fund. At least 75 percent of the members are from BPL families.
Loan at two percent interest
The Vulnerability Reduction Fund is a fund provided by ADS as an emergency aid to deal with the problems faced by the neighboring groups. 15,000 is usually paid to the neighboring group. Two percent interest is sufficient as repayment. But up to 25 percent of the contribution received by ADS can be given as a grant. The amount of this fund can be increased if the donations increase. Women can also use the funds to find self-employment
