Credit Facility for Women Self Help Groups Under DAY NRLM: Over ₹11 Lakh Crore Disbursed
The Deendayal Antyodaya Yojana -National Rural Livelihoods Mission (DAY-NRLM) has transformed access to credit for rural women in India. Since its launch, banks have disbursed loans worth ₹11,07,479.60 crore to Women Self-Help Groups (SHGs), with an outstanding amount of ₹2,99,833.35 crore as of the latest update.
This significant credit flow is aimed at empowering rural women, supporting entrepreneurship, and boosting financial inclusion in villages across the country.
Government Initiatives to Strengthen SHG Bank Linkage
To ensure smooth and increased access to loans for rural women, the government, through DAY-NRLM, has been working closely with financial regulators, commercial banks, and rural financial institutions at both strategic and operational levels.
Here are the key measures implemented:
1. Annual Guidelines for SHG Financing
Every year, at the request of the Ministry of Rural Development,the Reserve Bank of India (RBI) issues a Master Circular to public sector banks, private banks, and small finance banks with detailed instructions on SHG financing.
NABARD issues similar circulars for Regional Rural Banks (RRBs) and cooperative banks.
2. Central Level Coordination
A Central Level Coordination Committee meeting is held annually under the Chairpersonship of the Secretary of Rural Development. It brings together RBI, NABARD, banks, and other ministries to review progress and address challenges.
3. Regular Consultations with Banks
Consultation meetings on SHG Bank Linkage are conducted periodically with public sector banks, private banks, RRBs, cooperative banks, and State Rural Livelihood Missions (SRLMs).
4. On Ground Support Staff
Dedicated staff are deployed at the district level.
Bank Sakhis are placed in bank branches to help SHGs with loan applications, reviews, enhancements, and follow-ups.
A Community Based Repayment Mechanism (CBRM) ensures timely repayment of loans.
5. Digital Loan Monitoring System
The NRLM SHG Bank Linkage Portal (banklinkage.lokos.in) has been developed to track SHG loan disbursement and repayment. This system sources data directly from banks’ Core Banking Solutions (CBS) and is updated monthly.
6. Training for Bankers
Capacity building sessions and orientation programs are conducted for bankers to improve the implementation and efficiency of SHG loan schemes.
Loan Disbursement Guidelines for Banks
Both RBI and NABARD issue detailed guidelines for financing SHGs under DAY-NRLM:
RBI Master Circular: Read Here
NABARD Circular: Read Here
Loan Repayment Status
Currently Non Performing Asset (NPA) is 1.76% reflects the strong repayment discipline among the rural women groups.
This information was shared by Dr. Chandra Sekhar Pemmasani, Minister of State for Rural Development, in a written reply in the Rajya Sabha.