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RBI asks banks to extend loans to women SHGs at 7% rate

Reserve Bank of India (RBI) on 25 August 2016 asked all commercial and Co-operative banks to provide loans to women self-
help groups (SHGs) in rural areas at 7 percent per annum.
•    The loans will be provided for the financial year 2016-17 under the Deendayal Antyodaya Yojana - National Rural
Livelihoods Mission (NRLM) in 250 districts.
•    All women self-help groups (SHGs) will be eligible for interest subvention on credit up to three lakh rupees at 7
percent per annum.
•    SHGs availing capital subsidy under the Swarnajayanti Gram Swarozgar Yojana (SGSY) in their existing credit
outstanding will not be eligible for benefit under this scheme.
•    All banks will be subvented to the extent of difference between the weighted average interest charged and 7%,
subject to the maximum limit of 5.5% for 2016-17.
•    NRLM (Aajeevika) was launched by the Union Ministry of Rural Development (MoRD) in June 2011. 
•    In 2015, the mission was replaced by the Deen Dayal Antyodaya Yojana.