Deendayal Antyodaya Yojana National Rural Livelihoods Mission

Provision of Interest Subvention on loans availed by SHGs to cover the difference between the lending rate of the banks and 7

Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM) is a centrally sponsored programme under Ministry of Rural Development, Government of India, that aims at eliminating rural poverty. The Mission aims at mobilizing about 8-10 crore rural poor households into Self Help Groups (SHGs) in a phased manner and provide them long-term support enabling these institutions to access a range of financial services and livelihood services, such that they diversify their livelihoods, improve their incomes and quality of life.

Deendayal Antyodaya Yojana National Rural Livelihoods Mission Objective Image

Objectives

The objective of the Mission is to promote sustainable livelihoods for the poor such that they come out of poverty. The institutions of the poor are intended to facilitate (i) access to formal credit; (ii) support for diversification and strengthening of livelihoods; and (iii) access to entitlements and public services.

Benefits

Provision of Revolving Fund and Community Investment Fund as a support to SHGs to strengthen their institutional and financial management capacity and build a good credit history.
All women SHGs in the identified 250 backward districts will be eligible for bank credit upto 3 lakh at subvented rate of 7 per annum. SHGs availing capital subsidy under SGSY in their existing credit outstanding will not be eligible for benefit under this scheme.
Women SHGs in these districts maintaining prompt repayment will also be eligible for an additional interest subvention of 3, reducing the effective rate of interest to 4.
In remaining districts, women SHGs under DAY-NRLM will receive loans at regular lending rate. SHG maintaining prompt repayment will be provided subvention to the extent of the difference between lending rate and 7 p.a. This subvention will be provided to SHGs by respective State Governments.
Banks will extend loans to Self Help Groups as per doses mentioned in Master circular on DAY-NRLM notified by Reserve Bank of Indian and NABARD.
No margin or collateral would be charged up to 10.00 lakh limit to the SHGs.

Deendayal Antyodaya Yojana National Rural Livelihoods Mission Benefit Image

Eligibility

SHGs should be in active existence at least since the last 6 months as per the books of account of SHGs and not from the date of opening of S/B account.
SHGs should be practicing Panchasutras i.e., Regular meetings; Regular savings; Regular inter-loaning; Timely repayment; and Up-to-date books of accounts.
Qualified as per grading norms fixed by NABARD. As and when the federations of the SHGs come to existence, the grading exercise may be done by the Federations to support the banks.
The existing defunct SHGs are also eligible for credit if they are revived and continue to be active for a minimum period of 3 months.