Section 18 in Andhra Pradesh Micro Finance Institutions (Regulation of Money Lending) Rules, 2011
18. Procedure in case Micro Finance Institution wants to advance loan to a Self Help Group member.
(1)Micro Finance Institution proposing to advance loan to a Self Help Group or its member already having an outstanding loan taken from any Bank through the Self Help Group, shall apply for prior approval in Form 7 giving details of the member of the Self Help Group as provided in Section 10(2) of the Act.Provided that any advance of loan to family member of the Self Help Group woman by the Micro Finance Institution after the Act is deemed to be a loan advanced to Self Help Group woman by the Micro Finance Institution. Any violation of this rule by Micro Finance Institution is violation of the Act.(2)The Registering Authority or any person or Agency authorised by him shall verify the details within the time limits laid down in the Act; and conduct such verification with the Self Help Group to satisfy himself that the purpose for which the loan is proposed would generate additional income needed to service the loan.(3)Every permission granted under Section 10(3) of the Act shall be in Form 8.
