Rural Banking

1. Micro Banking
ICICI Bank's commitment to the rural and urban low-income populations is based on the vision and strategic opportunity to reach the large number of Indians lacking access to financial services today. By focusing on three key enablers partnerships, technology, and process & product innovation ICICI Bank has built the foundation for scaling the delivery of financial services to the poor. Through a wide range of micro-credit and micro-savings offerings, ICICI Bank already touches the lives of millions of low-income households across India, and is looking ahead to expand its services in the future.

2. Micro Credit
ICICI Bank provides financial assistance to the MFIs in the form of Term loan, Overdraft and Portfolio Buyout facilities. The Bank has established a dedicated micro finance development team responsible for providing these facilities to the MFIs. Term Loan and Overdraft Term loan is extended for on lending to micro finance clients. In addition to the above, the Bank extends Over Draft (OD) facility to tide over temporary cash flow mismatches. These facilities are extended to MFIs registered as Societies, Trusts, Not-for-profit Companies, Co-operatives, Credit cooperatives, MACS, CDS and NBFC.

Portfolio Buyout ICICI Bank buys unencumbered, direct agricultural and/or weaker section portfolio originated by the MFI (registered as NBFC) through the process of Direct Assignments. These are bilateral transactions that are entered into directly between the MFI and the Bank.Above mentioned facilities are extended at the discretion of ICICI Bank.

3. Micro Savings
Recognizing the need for easy savings facilities for its low-income customers, ICICI Bank has pioneered the launch of micro-savings products under its 'Business Correspondent' model. ICICI Bank has partnered with NGOs, Societies, and Trusts - its 'business correspondents' - to deliver savings services to its low-income customers. The micro-savings product provides the customer with access to a savings account with convenient features. The product combines security, convenience (proximity, convenient opening times and minimal paperwork), appropriate design (frequent deposits, small variable amounts and quick access) and positive returns.

4. Self Help Groups

Over the last few years, microfinance in India has evolved into various operating forms and to varying degree of success. One such form of microfinance is the Self Help Group (SHG) movement. Based on the concept of self-help, women organize themselves into groups of ten to twenty and operate a savings first-credit latermodel whereby member's savings are used to extend loans to the members. The rise of this lending model and formal SHG Federation, coupled with SHG Bank Linkage Programme, have made this a dominant form of microfinance. ICICI Bank has been active in the space of SHG lending for the past eight years. With its increased outreach in rural and semi urban areas, the Bank has plans to scale up lending under this model.

Target Customer Base :The product is targeted towards microfinance borrowers organized in SHGs which transacts with banks. These SHGs comprise primarily of women in rural and semi-urban locations who form a group by themselves or are organized by SHPIs. The group appoints officebearers from amongst the members to operate their account with a bank's branch in their vicinity. Eligibility : The targeted SHGs should have a savings account with the Bank and display credit discipline and transparency in book keeping. In case they do not have a savings account,they shall be required to open a savings account with the Bank before they can be sanctioned credit limits. Besides, the SHG should meet other eligibility norms of the Bank required for availing credit. Maximum Limit : Rs. 350,000 per SHG Security : Loans to SHGs shall be unsecured in nature.

Maximum Rate of Interest : I-Base + 10% Maximum Processing Fee : A non-refundable processing fee up to 2% (plus applicable service taxes) on the loan sanctioned by ICICI Bank shall be payable by the customer. No processing fees shall be collected for the loans up to Rs. 25,000. Penal Rate of Interest : Applicable Rate + 6% Other Charges : Other charges including but not limited to statutory charges, such as stamp duty on documentation etc., as applicable, are payable on actual basis and any other charges as communicated to the borrower from time to time by ICICI Bank. All in cost charges : All the above charges (mentioned here in above) comprise "All - in - cost"; for availing the facility / loan. Tenure : Up to 3 years End Use of Loans : Credit assistance provided to SHGs for meeting following credit requirements of SHG members -

Documentation : Following documents are required to be obtained/verified from SHG before extending credit limit Pre-Section Duly filled Preliminary Application Form Constitution documents - Recommendation letter/Sanction letter/ Loan Recommendation letter from Block Development Officer (BDO) or a Class I Gazetted officer working in the same department; or - Inter-se Agreement (either registered or unregistered) executed by all members of SHGs communicating their decision to open a Savings Account

with the bank and identifying two or three members to jointly operate the account

Identity Proof of the SHG - Recommendation letter/Sanction letter/ Loan Recommendation letter from Block Development Officer (BDO) or a Class I Gazetted officer working in the same department; or -SHG Registration certificate (if registered); or - Copy of passbook of existing account with a public sector bank; or - Original letter of introduction from a bank official of a public sector bank; or - Copy of passbook of an existing account with a Regional Rural Bank along with a letter of introduction from the Village Sarpanch/ Village Administrative Office (VAO)

Address Proof of the SHG -Same as Constitution Documents; or - Same as Identity Documents if it contains the address.

of all members of SHG (names, addresses, dates of birth) duly signed and stamped by Authorized Signatories

-Disbursement :

nter Se Agreement executed by all members of SHGs

anction Letter/Rejection Letter Post Disbursement: