Under DAY-NRLM, banks to provide funds at 7 percent to women SHGs: RBI
New Delhi, October 20: Under the Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM), the RBI on Wednesday provide funds to women Self Help Groups, SHGs, in rural areas at 7 percent in the current financial year for 250 districts.
Under DAY-NRLM, the revised guidelines were issued by the central bank on interest subvention scheme which will be implemented by the 21 public sector banks and 19 private banks.
The credit of up to 3 lakh rupees will come under interest subvention scheme in which all women SHGs will get the loan at the rate of 7 percent. The difference between the Weighted Average Interest Charged and 7 percent subject to the maximum limit of 5.5 percent for the year 2017-18 will be supported by the banks
As per the notification issued by the RBI, on the condition of providing credit at 7 percent per annum to the SHGs the subvention will be available to banks.
The Interest Subvention Scheme is a scheme for one year and it is implemented by NABARD and RBI. The objective of the scheme is to make available at ground level, agricultural credit for Short Term crop loans at an affordable rate to give a boost to agricultural productivity and production in the country.