The RBI has said banks will provide funds to women self help groups, SHGs, in rural areas at 7 per cent under the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM) in the current fiscal.
The central bank issued the revised guidelines on interest subvention scheme under DAY-NRLM, as received from the Ministry of Rural Development for implementation by 21 public sector banks and 19 private banks.
All women SHGs will be eligible for interest subvention on credit upto 3 lakh rupees at 7 per cent per annum. Banks will be subvented to the extent of difference between the Weighted Average Interest Charged and 7 per cent subject to the maximum limit of 5.5 per cent for the year 2017-18.
The interest subvention scheme on credit to women SHG during 2017-18 is applicable in 250 districts across the country.