Interest Subvention on SHG Loans (DAY-NRLM)

Why it matters

Makes SHG bank loans almost free — interest subvention brings the effective rate down to 7%, and to just 4% for prompt repayment in priority districts.

What you get

Interest subvention on loans to women SHGs: loans up to Rs 3 lakh at an effective 7% per annum, with an additional subvention for prompt repayment bringing it to 4% in identified districts.

Eligibility criteria

• Women Self-Help Group under DAY-NRLM
• Loan from a scheduled commercial / cooperative bank
• Prompt / regular repayment for the additional subvention
• Located per scheme district norms for the 4% benefit

How to apply

1. 1

   Avail an SHG bank loan under DAY-NRLM

2. 2

   Repay instalments on time

3. 3

   Bank / SRLM credits the interest subvention to the SHG account

4. 4

   Reduced effective interest cost to the group

Documents required

• SHG bank loan account
• Repayment record
• DAY-NRLM SHG membership proof