Master Circular – Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM)
The circular outlines the guidelines for the implementation of DAY-NRLM, a program aimed at promoting rural livelihoods.
Financial Assistance: The program provides financial assistance to Self-Help Groups (SHGs) and their federations through Revolving Funds (RF) and Community Investment Support Fund (CIF).
Role of Banks: Banks play a crucial role in the program by opening savings accounts for SHGs and their federations, and providing loans to eligible SHGs.
Lending Norms: The eligibility criteria for SHGs to avail loans include a minimum of 6 months of savings, and a loan amount of up to ₹1 lakh. The loan can be used for various purposes, including income-generating activities, and repayment is expected within 1-3 years.
Security and Margin: No security or margin is required for loans up to ₹50,000, while loans above ₹50,000 require a margin of 10-20%.
Defaulters: Banks are expected to deal with defaulters by sending reminders, and in case of persistent default, by reporting to the credit information bureau.
Post Credit Follow-up: Banks are required to conduct regular follow-ups with SHGs to ensure the loan is utilized for the intended purpose.
Repayment: Repayment of loans is expected to be made by SHGs, and banks are required to monitor the repayment process.
Deputation of Bank Officials: Bank officials may be deputed to State Rural Livelihood Missions (SRLMs) to provide technical assistance and support.
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Download: Master Circular – Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM)