The Reserve Bank has asked banks to provide loans to women self-help groups (SHGs) at 7% per annum, as per the government’s revised guidelines for 2016-17. All women SHGs are eligible for interest subvention on credit up to Rs 3 lakh at 7% per annum under Deendayal Antyodaya Yojana-National Rural Livelihoods Mission.
- As per the RBI notification, the banks will lend to all the women SHGs in rural areas at 7% in 250 districts.
- However, SHGs availing capital subsidy under SGSY in their existing credit outstanding will not be eligible for benefit under this scheme.
- All banks will be subvented to the extent of difference between the weighted average interest charged and 7%, subject to the maximum limit of 5.5% for 2016-17.
- This subvention will be available to all the banks on the condition that they make SHG credit available at 7% annually in the 250 districts.
- Further, the SHGs will be provided with an additional 3% subvention on the prompt repayment of loans.
Deen Dayal Antyodaya Yojana – NRLM:
Aajeevika – National Rural Livelihoods Mission (NRLM) was launched by the Ministry of Rural Development (MoRD) in June 2011. Aided in part through investment support by the World Bank, the Mission aims at creating efficient and effective institutional platforms of the rural poor, enabling them to increase household income through sustainable livelihood enhancements and improved access to financial services.
- Under the scheme, the poor would be facilitated to achieve increased access to rights, entitlements and public services, diversified risk and better social indicators of empowerment.
- In November 2015, the program was renamed Deen Dayal Antayodaya Yojana (DAY-NRLM).