Under the government's Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM) for the current fiscal year 2017-18, women SHGs shall be extended loan facility @ 7%. The guidelines for the scheme have been revised and provided to be implemented by as many as 21 public sector banks and 19 private banks.
The interest subvention scheme shall see banks to subvent to a maximum of 5.5% that is the difference between the weighted average interest charges and also 7%.
The notification by the central bank said, "All women SHGs will be eligible for interest subvention on credit upto Rs 3 lakh at 7 percent per annum... Banks will lend to all the women SHGs in rural areas at the rate of 7 percent". It further added, ""This subvention will be available to banks on the condition that they make SHG credit available at 7 percent per annum," the notification said.
The scheme functional across 250 districts was launched by the rural development ministry in the year 2011 is aimed at increasing efficiency and household income at the rural level through livelihood improvements as well as increased access to financial services.
With Inputs From PTI