1. The group should have been in active existence for atleast a period of Six months and above.

2. The group should have successfully undertaken savings and credit operations from its own resources.

3. Democratic working of the group wherein all members feel that they have a say should be evident.

4. The group should maintain proper accounts / records.

5. There should be a genuine need to help each other and work together among the members.
 
6. The SHGs members should preferably have homogeneous background and interest.

7. The First linkage provided will be three times of their savings and the subsequent linkages will be six times of     their savings.

8. The interest rate charged is 14-15%.