1. Provide loans to women SHGs at 7 per cent: RBI to banks

Provide loans to women SHGs at 7 per cent: RBI to banks

The Reserve Bank today asked banks to provide loans to women self-help groups (SHGs) at 7 per cent per annum, as per the government's revised guidelines for 2016-17.

By: | Mumbai | Published: August 25, 2016 10:13 PM
Indian rupee vs US dollar The banks will lend to all the women SHGs in rural areas at 7 per cent in 250 districts.

The Reserve Bank today asked banks to provide loans to women self-help groups (SHGs) at 7 per cent per annum, as per the government’s revised guidelines for 2016-17.

“All women SHGs will be eligible for interest subvention on credit up to Rs 3 lakh at 7 per cent per annum (under Deendayal Antyodaya Yojana-National Rural Livelihoods Mission). SHGs availing capital subsidy under SGSY in their existing credit outstanding will not be eligible for benefit under this scheme,” RBI said in a notification.

The banks will lend to all the women SHGs in rural areas at 7 per cent in 250 districts, it said.

All 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 2016-17, it said.

This subvention will be available to all the banks on the condition that they make SHG credit available at 7 per cent annually in the 250 districts, it added.

“Further, the SHGs will be provided with an additional 3 per cent subvention on the prompt repayment of loans. For the purpose of interest subvention of additional 3 per cent on prompt repayment, an SHG account will be considered prompt payee if it satisfies the following criterion as specified by RBI,” it added.

  1. No Comments.

Go to Top