The objective of the institution set-up on 30 March, 1993 under Societies Registration Act, 1860 is to facilitate credit support to poor women for their socio-economic upliftment. The support is extended through NGOs, Women Development Corporations, state government agencies like DRDAs, Dairy Federations, Municipal Councils, etc. RMK extends loan to the above organizations at 8 per cent and the above organizations can lend to the women Self Help Groups/
ultimate women beneficiaries at an interest ranging from 8 per cent to 18 per cent. The RMK provides micro-credit with a unique credit delivery model ‘‘RMK-NGO-SHG – Beneficiaries’’ which is one of the main reasons for its success. The other reasons are its flexible credit norms, hassle free loans, no collateral and reasonable rate of interest.
Rashtriya Mahila Kosh (National Credit Fund for Fund) was set up by the Government of India in March 1993 as an autonomous body registered under Societies Registration Act 1860 under the Department (now Ministry) of Women and Child Development. The objective was to facilitate Credit Support to poor women for their Socio-economic upliftment. The credit needs of poor women, specially those in the unorganized sector, are not adequately addressed by the formal financial institutions of the country. Thus RMK was established to provide loans in a quasi formal credit delivery mechanism, which is client-friendly, has simple and minimal procedure, disburse quickly and repeatedly, has flexible repayment schedules, link thrift and savings with credit and
has relatively low transaction costs both for the borrower and the lender. The RMK provides micro-credit with a unique credit delivery model “RMKNGO- SHG-Beneficiaries”. The support is extended through NGO’s women Development Corporations, State Government agencies like DRDA’s, Dairy Federations, Municipal Councils etc. These agencies are provided loan at 8 per cent interest on reducing balance and they can lend to the Self Help Groups (SHG)/ beneficiaries at interest ranging between 8-18 percent on reducing balance. This is a very reasonable interest rate and no collateral is required.