BIG BOOST to Self-Help Groups: Amendments to CGFMU Scheme notified! COLLATERAL FREE loans under DAY-NRLM enhanced from Rs 10 lakh to Rs 20 lakh, says RBI
In a big boost, the RBI has decided to enhance the collateral free loans from Rs 10 lakh to Rs 20 lakh for the SHGs under DAY-NRLM.
RBI Collateral Free Loans: In major boost to the Self-Help Groups (SHGs), the government of India has decided to enhance collateral free loans for the SHGs from Rs 10 lakh to Rs 20 lakh under Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM). The Reserve Bank of India (RBI) has informed the public, private and the small finance banks regarding the enhancement of collateral free loans for the SHGs through a letter.
See Zee Business Live TV Streaming Below:
The Department of Financial Services informed about this notification from its official Twitter handle. The tweet said, "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."
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
This decision by the government is a modification to the master circular on April 1, 2021. As per this modified circular, no collateral and no margin will be charged in case of loans up to Rs 10 lakh for the SHGs. In addition to that, no lien should be marked against the savings bank accounts of the SHGs and no deposits should be insisted upon while sanctioning the loans.
As for loans between Rs 10 lakh and Rs 20 lakh, no collateral should be charged from the SHGs and no lien should be marked against the savings bank account of the SHGs. However, the entire loan (irrespective of the loan outstanding, even if it subsequently goes below Rs 10 lakh) would be eligible for coverage under the Credit Fund for Micro Units (CGFMU).
Aajeevika - National Rural Livelihoods Mission (NRLM) was launched by the Ministry of Rural Development (MoRD), Government of India in June 2011. In November 2015, the program was renamed Deendayal Antayodaya Yojana (DAY-NRLM). As per the DAY-NRLM website, the initiative sets out with an agenda to cover seven crore rural poor households, across 600 districts, 6000 blocks, 2.5 lakh Gram Panchayats and six lakh villages in the country through self-managed SHGs and federated institutions and support them for livelihoods collectives in a period of 8-10 years.
In case of any query, the interested persons can login to the official website of DAY-NRLM at aajeevika.gov.in.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
EPFO Pension Schemes: Early pension, retirement pension, nominee pension and 4 other pension schemes that every private sector employee should know
Tata Motors, Muthoot Finance and 3 more: Axis Direct recommends buying these stocks for 2 weeks; check targets, stop losses
09:04 AM IST