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Drishti IAS
call1800-121-6260 / 011-47532596
Drishti The Vision Foundation
(A unit of VDK Eduventures Pvt. Ltd.)
Aajeevika loans for women at 7%
Feb 01, 2014

The National Rural Livelihood Mission (NRLM) aims at creating efficient and effective institutional platforms of the rural poor enabling them to increase household income through sustainable livelihood enhancements and improved access to financial and selected public services.

In a major boost to the women's self help group interest subvention for the loans taken by women Self Help Groups has been lowered.

Accordingly, from 1st Feb 2014, all Banks (PSBs, RRBs, Cooperative Banks and Private Banks) will lend to all the women SHGs at upfront 7% interest(for loans upto Rs. 3 lakhs) in 150 select backward districts. These SHGs will get a further 3% subvention on prompt repayment, thus the effective charge on all such loans will be 4% only. In addition, all women SHGs with outstanding loans (from 1st April 2013 onwards for loans upto Rs. 3 lakhs) will pay interest only at 7% from February 1st. They will be reimbursed the differential interest amount for the period 1st April 2013 to 31st January, 2014.

In the remaining districts, women SHGs that are NRLM compliant and are regular in repaying Bank loans will enjoy interest subvention on reimbursement basis, making effective interest 7% for loans upto Rs. 3 lakhs. This is also with effect from 1st April 2013.


Helpline Number : 87501 87501
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