Women SHGs Should Be Provided Loans at 7% Rate as Per RBI Recommendations


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

Key Facts

  • 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/Last Modified on: August 30, 2016