RBI asks banks to extend loans to women SHGs at 7% rate
Reserve Bank of India (RBI) has asked banks to provide loans up to Rs 3 lakh at 7 per cent interest rate to Women Self-Help Group (SHG).
This loan scheme must be provided under the National Rural Livelihoods Mission (NRLM)-Aajeevika scheme during 2015-16.
- The revised guidelines on interest subvention scheme under NRLM have been issued after approval from the Union Ministry of Rural Development.
- Under this loan scheme, an interest subvention on credit up to Rs 3 lakhs at 7% per annum will be provided. All women SHGs will be eligible for it.
- However, SHG availing capital subsidy under Swarnjayanti Gram Swarojgar Yojana (SGSY) in their existing credit outstanding will not be eligible for benefit under this scheme.
- All banks will be subsidised to the extent of difference between the weighted average interest charged and 7% subject to the maximum limit of 5.5% for the year 2015-16.
- Further, SHGs will be provided with an additional 3% subvention on the prompt repayment of loans.
- The funding for this subvention will be provided to the State Rural Livelihoods Missions (SRLMs) from the allocation for NRLM.
About National Rural Livelihoods Mission (NRLM)-Aajeevika
- NRLM-Aajeevika was launched by the Union Ministry of Rural Development in June 2011. In November 2015, it was renamed Deen Dayal Antayodaya Yojana (DAY-NRLM).
- The Mission aided by World Bank aims at creating efficient and effective institutional platforms of the rural poor.
- It seeks to enable rural poor (below BPL) to increase household income through sustainable livelihood enhancements and improved access to financial services.
- It is the largest poverty reduction initiative and the largest programme for women in the world with its goal to reach out to nearly 70 million rural households.