The Post Tsunami Livelihood Program (PTSLP) is being conceptualised by IFAD and implemented by Govt. of Tamil Nadu and IFAD in collaboration with NABFINS for funding support for setting up micro enterprises in coastal districts of Thiruvallur, Kancheepuram, Villupuram, Cuddalore, Nagapattinam, Kanyakumari, Thiruvarur, Thanjavur, Thoothukudi, irunelveli, Ramnad and Pudukottai.
The unique model of funding is adapted under the programme to finance micro enterprises of the poor. The 70% of this project cost is funded by NABFINS at normal rate and 25% is funded from the patient capital @4% p.a, remaining 5% is the margin money by the borrower. This approach brings down the effective cost of borrowing for the clients.
Interest rates on loans
| Borrower Category | Loan Amount | Interest rate (%) | Processing fees | GST | Penal Charges for prepayment | Credit Insurance |
|---|---|---|---|---|---|---|
| JLGs formed by IFAD | Upto Rs. 2 lakh | 17.85% | 1% of sanctioned amount | 18.00% of processing fee | Nil | Rs.2.92 for Rs.1000 |
| Loans from Patient Capital | 25% of project cost | 4% | – | – | – | Rs.2.92 for Rs.1000 |
