National Rural Livelihood Mission (NRLM)
Govt. of India has launched Deen Dayal Antyodaya Yojana - National Rural Livelihood Mission (DAY-NRLM) by replacing the existing Swarnajayanti Gram Swarojgar Yojana (SGSY) scheme w.e.f 1st April 2013.
NRLM is the flagship program of Govt. of India for eliminating poverty through building strong institutions of the poor, particularly women and enabling these institutions to access a range of financial services and livelihood services.
NRLM will identify the target group of poor through a ‘participatory identification of the poor’ process instead of using the BPL list as was done in SGSY.
Preference will be given to the poorest of poor households.
NRLM will promote formation of women SHGs on the basis of affinity and not on the basis of common activity, as it used to be under SGSY.
Unlike SGSY, NRLM scheme has taken a saturation approach and will ensure all the poor in a village are covered and a woman from each poor family is motivated to join the SHG.
SHG Federations: All SHGs in a village come together to form a federation at the village level. The cluster federation is the next level of federation.
NRLM will provide continuous hand-holding support to SHGs and their federations which was missing in SGSY.
Mission provides support to a great extent by capacitating the SHG federations and by building a cadre of community professionals from among the poor women.
The ultimate objective is to ensure that SHGs are enabled to access repeat finance from Banks, till they attain sustainable livelihoods and decent living standards.
All NRLM compliant women SHGs are eligible for interest subvention.
Subvention is available to the extent of difference between the Lending Rate of the banks and 7.00%, for a maximum amount of Rs 3,00,000 per SHG.
This subvention will be available across the country in two ways:
Category I Districts:
In 250 identified NRLM intensive Districts, banks lend to all women SHGs @7.00% p.a. up to an aggregate loan amount of Rs 3.00lakh. GOI provides interest subvention at the maximum of 5.25% p.a. to the Bank
These SHGs will also get additional interest subvention of 3.00% on prompt payment, reducing the effective rate of interest to 4.00%.
Category II Districts:
All NRLM compliant prompt repaying women SHGs will be eligible for interest subvention to the extent of difference between the lending rates of the Bank and 7.00% for loan up to Rs. 3.00 lakh by the State Rural Livelihood Mission.
In the Category II districts, Bank will charge applicable rate of interest to SHGs and claim the interest subvention to be credited to the loan account of the borrowers.