Comments
Ahead of the Lok Sabha polls, the Government today reached out to rural women by rolling out Rs 1,400 crore interest subvention on loans taken by Self Help Groups working for their empowerment.
Interest subvention for the loans taken by women Self Help Groups (SHGs) is a significant initiative under Cetre’s ambitious programme National Rural Livelihoods Mission (NRLM).
Rural Development Minister Jairam Ramesh said that it is applicable for loans availed by women SHGs from April 1, 2013.
According to the Minister, from today onwards, all banks will lend to women SHGs at upfront 7 per cent interest (for loans up to Rs 3 lakhs) in 150 select backward districts, most of which are affected by Naxal menace.
These SHGs will get a further 3 per cent subvention on prompt repayment, thus the effective charge on all such loans will be 4 per cent only.
In addition, all women SHGs with outstanding loans (from April 1, 2013 onwards for loans up to Rs 3 lakhs) will pay interest only at 7 per cent from today. They will be reimbursed the differential interest amount for the period April 1, 2013 to January 31, 2014, Ramesh said.
In the remaining districts, women SHGs that are NRLM compliant and are regular in repaying bank loans will enjoy interest subvention on reimbursement basis, making effective interest 7 per cent for loans up to Rs 3 lakhs. This is also with effect from April 1, 2013.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.