The highest amount of the loan for the members is known as the loan limit. The success of the micro-credit process depends on the family status and condition of the member, after study of the highest investment, the loan proposal loan disbursement, loan utilization and ensuring income.
At the time of the loan proposal, the member himself after discussion with the family members will decide the loan amount and submit to the group members. Other members generally used to study the loan proposal of the applicant to ascertain the loan amount for onward submission to the somity chief/ gr: leader. If the applicant member is a candidate for more than one time, his previous transaction and success are to be taken into consideration. The somity chief/ group leader on the basis of the opinion of other members will consider the loan purpose, utilization & assurance of income and decide the loan limit.
To fix up the loan limit, the collection rate of the somity, the collection rate of his own small group, whether the somity is in full strength or partially filled up, amount of savings of own share in the proposed investment, failure installments, presence in the somity meeting, behavior of the member, etc will have to be counted. Considering aforesaid matters, on the basis of demand, time limit of the organization, the loan limit is to be fixed up.