Women SHGs will get loans up to Rs 3 lakh at 7% interest rate: RBI

Reserve Bank of India (RBI) has asked banks to provide loans up to Rs 3 lakh at only 7 per cent interest rate to Women Self-Help Group (SHG under the National Rural Livelihoods Mission (NRLM)-Aajeevika scheme during 2015-16.

All women SHGs will be eligible for interest subvention on credit up to Rs 3 lakhs at 7 per cent per annum. SHG availing capital subsidy under Swarnjayanti Gram Swarojgar Yojana (SGSY) in their existing credit outstanding will not be eligible for benefit under this scheme,” the Reserve Bank said in a notification.

Important Points – 

  • After approval from the Union Ministry of Rural Development, the revised guidelines on interest subvention scheme under NRLM have been issued.
  • Under this loan scheme, an interest subvention on credit up to Rs 3 lakhs at 7% per annum will be provided.
  •  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.
  • Under this loan scheme, an interest subvention on credit up to Rs 3 lakhs at 7% per annum will be provided.
  • Without any doubt, all women SHGs will be eligible for it.

Further, the SHGs will be provided with an additional 3 per cent subvention on the prompt repayment of loans. For category II districts, comprising of districts other than the above 150 districts, all women SHGs under NRLM will continue to be eligible for interest subvention to avail the loan facility at an interest rate of 7 per cent. The funding for this subvention will be provided to the State Rural Livelihoods Missions (SRLMs) from the allocation for NRLM.

What is a Self-Help-Group (SHG)?

  1. A self-help group (SHG) is a village-based financial intermediary committee usually composed of 10–20 local women or men.
  2. A mixed group is generally not preferred.
  3. Most self-help groups are located in India, though SHGs can be found in other countries, especially in South Asia and Southeast Asia.

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