Women SHGs Should Be Provided Loans at 7% Rate as Per RBI Recommendations [ Current Affairs ]
Reserve Bank of India (RBI) has recommended banks to provide loans to Women Self-Help Group (SHG) up to Rs 3 lakh at 7 per cent interest rate under the National Rural Livelihoods Mission (NRLM)-Aajeevika scheme during 2015-16
- After getting approval from the Union Ministry of Rural Development the revised guidelines on interest subvention scheme under NRLM have been issued.
- An interest subvention will be credited on Rs 3 lakhs at 7% per annum will be provided.
- All women SHGs will be eligible for this subvention aspect to those who have SHG availing capital subsidy under Swarnjayanti Gram Swarojgar Yojana (SGSY) in their existing credit outstanding.
- All banks will be gets subsidies of difference between the weighted average interest charged and 7% subject to the maximum limit of 5.5% for the year 2015-16.
- In addition SHGs will also be provided with an additional 3% subvention on the rapid repayment of loans.
- The State Rural Livelihoods Missions (SRLMs) will get funding for this subvention from the allocation for NRLM.
About National Rural Livelihoods Mission (NRLM)-Aajeevika
- The Union Ministry of Rural Development has launched NRLM-Aajeevika in June 2011.
- Latter it was renamed Deen Dayal Antayodaya Yojana (DAY-NRLM) in November 2015.
- The World Bank also helps in this mission for creating efficient and effective institutional platforms of the rural poor.
- The main aim of this mission is to enable rural poor (below BPL) to rise household income by sustainable improved income and access to financial services.
- This is the largest poverty reduction initiative.
- This is also a major programme for those women who have their goal to reach out to nearly 70 million rural households across the world.
- Published on: August 30, 2016