The National Credit Fund for Women (Rashtriya Mahila Kosh - RMK) was set up on 30 March 1993 with corpus fund of Rs 31 crore with the major objective of meeting the credit needs of poor women, particularly in the informal sector. The RMK set up under the Societies Act, 1860, is managed by a governing board comprising 16 members. The Minister of State for Women and Child Development is the Chairperson of the Kosh. The RMK has sanctioned upto 31 March 2000, loans amounting to Rs 82.29 crore to benefit 3,60,383 women through 712 NGOs. Besides extending micro-finance, RMK has also launched a scheme to support the formation and stabilisation of women’s Self Help Groups (SHGs). Under this Scheme, RMK gives an interest-free loan of Rs one lakh for formation and stabilization of 25 SHGs. The loan is convertible into grant on fulfilment of certain conditions. As on 31 May 2000, an amount of Rs 311.78 lakh was sanctioned to 327 NGOs for formation of SHGs.

The main objective of RMK is to facilitate credit support or micro-finance to poor women, as an instrument of socio-economic change and development. RMK mainly channelises its support through Non-Governmental Organisations, Women Development Corporations, Cooperative Societies and Indira Mahila Block Samities under the Indira Mahila Yojana.

NGOs who fulfil the following eligibility norms may apply directly to RMK as per prescribed format for loan:

• The application should clearly reflect the source of funds utilised earlier for credit.
• Recoveries of the loans should be of a high order (around 90% of its dues).
• There should be a proper and specific clause/provision in the bye-laws/Memorandum of Association of the organisation having power to borrow or to raise loans from any outside agency.
• There should be an appropriate reflection in its audited accounts and balance sheet in respect of its experience in providing credit and recoveries, etc., and there should not be any loss or objectionable observations in its audited accounts report.

Women Development Corporations running on sound lines and having adequate experience in thrift and credit administration of at least three years and fulfilling the eligibility norms as for NGOs, are eligible for obtaining credit from RMK.

In the case of Cooperative Societies, they should have at least 1/3^rd women members in their General Body and also adequate representation of women on its Managing Committee and the Society should be working at a profit at least for the last two years. Other terms and conditions are the same as for NGOs.

In the case of Indira Mahila Block Samities, they should be registered under the Indira Mahila Yojana and should have adequate experience in formation and stabilisation of SHGs, mobilisation of savings, experience in credit management and maintenance of proper books of accounts.

1. Revolving Fund Scheme

The Revolving Fund Scheme was introduced with a view to provide more flexibility to the NGOs implementing income generation programme of the Kosh. Under the Scheme, credit limits upto 5% of total sanctions by RMK during the year, are sanctioned at a time, to identified and experienced organisations. The organisations are expected to revolve the funds by utilising recoveries for providing credit to more SHGs/members particularly in the uncovered areas. The repayment starts on completion of 12 months from the date of release of the loan in 4 half-yearly instalments. The total repayment period is 30 months.

2. Promotional and Other Innovative Schemes

In the course of the last six years, RMK has not only proved to be a successful scheme for taking the message of micro-credit to various parts of the country but has also proved to be a major venture in terms of efforts in poverty alleviation coupled with cost-effectiveness. The Kosh has also taken a number of promotional measures for popularising the concept of micro-financing, thrift-credit, formation and stabilisation of SHGs and also enterprise development for poor women. Some of the promotional and other innovative schemes of RMK are explained below:

• Loan Promotion Scheme: The Loan Promotion Scheme has been designed to promote the activities of thrift and credit among smaller but potentially capable NGOs/organistions who do not meet the requirement of three years’ experience in thrift and credit management. The requirement of experience under the Loan Promotion Scheme has been reduced to one year i.e. the NGO/organisation must have at least one year’s experience in thrift and credit. However, other eligibility norms are the same as in the case of RMK Main Loan Scheme. The maximum loan amount given to an NGO/organisation under this Scheme is Rs two lakh.
• Self Help Group (SHG) Development Scheme: Under the Scheme of SHG Development, financial assistance by way of interest-free loan convertible into grant on the fulfilment of specific conditions is given to the NGOs for formation, development and stabilisation of SHGs. The SHGs serve as decentralised centres of administration for NGOs who take responsibility for forming these groups. The SHGs provide strength to poor women and make them articulate and confident. The financial assistance provided under the SHG Scheme is Rs 4,300/- for one SHG or Rs 1 lakh for 25 SHGs during the first year. The portion of interest-free loan which is not converted into grant at the end of 30 months, is recovered by RMK at 8 % rate of interest.
• Nodal Agency Scheme:- The Nodal Agency Scheme of RMK has been introduced to utilise the services of experienced and reputed organisations to promote new potential NGOs through training, monitoring and to help them acquire necessary capability to avail of credit facilities from RMK. Organisations with micro-credit experience, adequate infrastructure and training capabilities are eligible to take up nodal agency functions for RMK on entering into a Memorandum of Understanding. The Nodal Agency will identify and prepare new NGOs to eventually link them with RMK for extending credit facilities to poor women for income generation activities. The Scheme has been revised and made target-oriented where each Nodal Agency will link at least 12-15 new NGOs with RMK under one stream.
• Marketing Finance Scheme:- The Scheme was introduced by RMK to help women beneficiaries to market their products to NGOs/organisations.

The loans drawn from RMK are to be used by the organisations/borrowers for undertaking income generation activities unless it is specifically mentioned for other purposes.

Maximum amount of loan under the Main Loan Scheme/Loan Promotion Scheme of RMK is Rs 7,500/- per borrower. The loans are given repeatedly, if necessary, to bring the women above the poverty line.

The NGOs and other organisations are given loans by RMK @ 8% p.a., the interest is charged on reduced balances. The NGOs can charge a rate of interest maximum upto 12% from the borrowers directly financed by the NGOs or from the SHGs. The SHGs can decide the rate of interest to be charged from their members subject to the ceiling that the interest rate should not exceed the interest rate of State bank of India on its unsecured loans for the previous financial year. The loans from RMK do not have any element of subsidy and the women are asked not to provide any collateral security.

During the year 1999-2000, the following workshops were organised upto 31^st January 2000 to generate awareness about its programmes/schemes.

The Recruitment Rules of RMK were finalised and came into effect from 30^th November 1999. The rules provide for recruitment to various posts in RMK on short term contract basis.

RMK website was inaugurated by Smt. Sumitra Mahajan, Chairperson, RMK and Minister of State, Department of Women and Child Development. The website address is http://rmk.nic.in.

The projected estimates of loan sanctions during the year 1999-2000 are Rs. 18 crore to benefit 56,250 women. As against this, Rashtriya Mahila Kosh has already sanctioned credit of Rs 14.72 crore to benefit 47,458 women upto 31^st January, 2000 through 224 new NGOs.

Since its inception on 30^th March, 1993, the achievements of RMK upto 31^st January, 2000 are as under:

* Credit sanctioned: Rs. 77.36 crores.

* Number of women beneficiaries: 3,49,752

* Number of collaborating NGOs/Organisations: 688

* Disbursements already made: Rs. 57.62 crore

During the year 1999-2000, an amount of Rs. 18 lakh has been sanctioned to the NGOs in the North-Eastern region including Sikkim upto 31^st January, 2000, to benefit 510 women. The cumulative amount of sanctions in the North-Eastern Region including Sikkim since inception of RMK in 1993 is Rs. 136 lakh.

1. Annual Report 1999-2000 of Department of Women and Child Development
2. India, 2000