Self-help groups will now be able to get a loan of Rs 20 lakh without any collateral. RBI has given complete information to all the banks about this decision. This loan to SHG is given under DAY-NRLM.
Self-help groups will now get a loan of Rs 20 lakh instead of Rs 10 lakh without collateral or margin. The Department of Financial Services, Ministry of Finance has given information about this on Thursday. In this regard, the Reserve Bank of India has given information by writing a letter to the public and private sector banks as well as small finance banks. This loan to self-help groups is given under Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM).
The Department of Financial Services has given information about this on Thursday through its official Twitter handle. The department wrote in a tweet, ‘Now no collateral is required for loans of 10 to 20 lakh rupees to self-help groups. The amendment has been notified to the Credit Guarantee Fund for Micro Units (CGFMU).
No collateral to be now required for loans between Rs. 10 lakh and Rs. 20 lakh to Self Help Groups (SHGs). Amendments to Credit Guarantee Fund for Micro Units (CGFMU) Scheme notified. Reserve Bank of India (@RBI) Master Circular modified.@PMO @FinMinIndia #SHG pic.twitter.com/w0vkg6IQRL
— DFS (@DFS_India) August 19, 2021
Now no condition on loan up to Rs 20 lakh
This decision of the government has been taken after making changes in the master circular issued on April 1, 2021. As per the circular, SHGs will not have to pay any collateral or margin for loans up to Rs 10 lakh. In addition, no conditions will be placed on the savings bank accounts or deposits of these SHGs for loan issuance. However, there will be no such condition for loans up to Rs 20 lakh. But, the entire loan amount is eligible for Credit Fund for Micro Units (CGFMU).
who will get the benefit
Aajeevika – National Rural Livelihood Mission (NRLM) was implemented by the Ministry of Rural Development (MoRD) in June 2011. After this, in November 2015, the name of this scheme was changed to Deendayal Antyodaya Yojana (DAY-NRLM). According to the information given on the website of DAY-NRLM, 7 crore poor families will benefit from this initiative of the government. These beneficiaries will reach 6 districts, 6,000 blocks, 2.5 lakh gram panchayats and six lakh villages. Through this, the poor class living in rural areas will get many types of support in the next 8 to 10 years.
