As per RBI’s revised guidelines on interest subvention scheme, banks to provide funds to women SHGs in rural areas at 7% under DAY-NRLM for FY18

According to Reserve Bank of India (RBI)’s revised guidelines on interest subvention scheme, banks will provide funds to women Self Help Groups (SHGs) in rural areas at 7% under the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM) in the current fiscal FY18.
These guidelines will be implemented in 21 Public Sector Banks (PSBs) and 19 private banks. All women SHGs will be eligible for interest subvention on credit upto Rs 3 lakh at 7% per annum. Banks will be subvented to the extent of difference between the Weighted Average Interest Charged and 7% subject to the maximum limit of 5.5% for the year 2017-18.
The subvention will be available to banks on the condition that they make SHG credit available at 7% per annum. The interest subvention scheme on credit to women SHG during 2017-18 is applicable in 250 districts across the country.