RBI directs banks to extend loans to women SHGs

Taking cue from the National Rural Livelihoods Mission (NRLM)’s “Aajeevika” scheme during 2015-16, the RBI has asked banks to provide loans up to Rs 3 lakh at 7 per cent interest rate to Women Self-Help Group (SHG).

“All women SHGs will be eligible for interest subvention on credit up to Rs 3 lakh 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.

The commercial banks and cooperative banks will lend to all the women SHGs in rural areas at the rate of 7 per cent in the 150 districts, it said.

The SHGs will be provided with an additional 3 per cent subvention on the prompt repayment of loans.

The funding for this subvention will be provided to the State Rural Livelihoods Missions (SRLMs) from the allocation for NRLM.

“In the Category II districts, banks will charge the SHGs as per their respective lending norms and the difference between the lending rates and 7 per cent subjected to a maximum limit of 5.5 per cent for the 2015-16 will be subvented in the loan accounts of the SHGs by the SRLM,” it added.


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