According to a recent RBI directive, banks have been asked to provide loans at 7% per annum to women who belong to self-help groups (SHGs).
Under Deendayal Antyodaya Yojana – National Rural Livelihoods Mission, women working under self-help groups will be eligible to get interest subvention of 7% for loan amounts of up to Rs 3 lakhs. However, SGHs that are already paying off their due loan amount under SGSY scheme will not be benefited by the new reduced interest rate loan scheme.
The government will subvent the difference between actual interest charged and 7% interest to all the banks, maximum limit of subvention will be 5.5%.
The subvention can be availed only when the banks will provide loans to SHGs at 7% per annum in 250 districts.
Furthermore, if SHGs satisfy the prompt repayment criteria specified by RBI; then an additional subvention of 3 per cent on the loan amount will be applicable.