Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM)

1.Who launched DAY-NRLM scheme and when?
Scheme was launched by Ministry of Rural Development, Govt. of India on 01st April 2013. Scheme was renamed as DAY-NRLM (Deendayal Antyodaya Yojana – National Rural Livelihoods Mission) w.e.f. March 29, 2016.
2. Normally what is no. of members in women SHGs under DAY-NRLM Scheme?
It is 10-20 members. In case groups in the difficult areas, groups with disabled persons, and groups formed in remote tribal areas, this number may be a minimum of 5 members.
3. What is target system for loans under DAY-NRLM Scheme?
50% of the beneficiaries should be SC/STs, 15% minorities and 3% persons with disability.
4. What is extent of members slightly above poverty line, that can be part of SHG under DAY-NRLM Scheme?
Up to 30% of the total membership may be from among the population marginally above the poverty line.
5. To strengthen their institutional and financial management capacity and build a good credit history within the group, what is the amount of Revolving Fund (RF) support under DAY-NRLM Scheme?
It ranges between ₹20,000 – ₹30,000 per SHG.
6. Is there any min period of existence condition for SHG, to avail revolving fund or a normal loan for economic activty under DAY-NRLM Scheme?
SHGs should in existence for a minimum period of 3/6 months?
7. What is Panchasutras condition for SHG under DAY-NRLM Scheme, to avail revolving fund or a normal loan for economic activity?
Panchasutras has five elements namely 1)regular meetings, 2)regular savings, 3)regular internal lending, 4) regular recoveries and 5) maintenance of proper books of accounts
8. Which type of SHG under DAY-NRLM Scheme, can open current account?
Banks can open current accounts for Producer Groups promoted under DAY-NRLM at village, gram panchayat, cluster or higher level.
9. If an existing defunct SHGs want to avail loan under DAY-NRLM Scheme, what is the condition?
SHG should be revived and then continue to be active for a minimum period of three months.
10. What is max amount of cash credit loan, a SHG can raise under DAY-NRLM Scheme?
Banks can sanction a minimum loan of ₹6 lakh to each eligible SHG for a period of 3 years with a yearly drawing power (DP).
11. Within a sanctioned cash credit loan, how the drawing power (DP) shall be calculated, year-wise, under DAY-NRLM Scheme?
DP for first year : 6 times of the existing corpus or minimum of ₹1.5 lakh, whichever is higher.
DP for second year: 8 times of the corpus at the time of review/enhancement or minimum of ₹3 lakh, whichever is higher.
DP for third year: Minimum of ₹6 lakh based on the Micro Credit Plan (MCP) prepared by SHG and appraised by the federations/support agency and the previous credit history.
DP for fourth year onwards: Above ₹6 lakh, based on the MCP prepared by SHG and appraised by the federations/support agency and the previous credit history.
12. What will be the year-wise amount of DP for term loans under DAY-NRLM Scheme?
It is year-wise on the same pattern as in case of cash credit loans.
13. For the purpose of DAY-NRLM Scheme, what is included in SHG corpus?
It includes revolving funds, SHG own savings, interest earned by SHG from on-lending to its members, income from other sources, and funds from other sources in case of promotion by other institutes/NGOs.)
14. What is the provisions in DAY-NRLM Scheme to sanction loans to individual women members of SHG?
Banks can extend loans up to ₹10 lakh to individual members of select matured well performing SHGs, which are more than 2 years old and have accessed at least one dose of bank loan with timely repayment.
15. What is the provision in DAY-NRLM Scheme, to sanction MUDRA loan?
One woman in every SHG may be provided a loan up to ₹1 lakh under the MUDRA Scheme, if she is otherwise eligible.
16. What is the provision in DAY-NRLM Scheme, to sanction overdraft facility to each woman member?
Banks are to provide minimum OD facility of ₹5000 to every woman SHG member having PMJDY account.
17. Is there any requirement for loan amount for income generating productive purposes under DAY-NRLM scheme?
At least 50% of loans above ₹1 lakh, 75% of loans above ₹4 lakh and at least 85% of loans above ₹6 lakh should be used primarily for income generating productive purposes.
18. What is dose-wise repayment period of Term Loans?
1st dose : 24-36 months in monthly/quarterly instalments.
2nd dose : 36-48 months in monthly/quarterly instalments.
3rd dose : 48-60 months based on the cash flow in monthly/quarterly instalments.
4th does: 60-84 months based on the cash flow in monthly/quarterly installments.
19. What is security and margin requirement for loans up to Rs.10 lakh under DAY-NRLM Scheme?
For loans to SHGs up to ₹10.00 lakh, no collateral and no margin will be obtained.
20. What is security requirement for loans above Rs.10 lakh under DAY-NRLM Scheme?
For loans to SHGs above ₹10 lakh and up to ₹20 lakh, no collateral should be obtained. Entire loan would be eligible for coverage under Credit Guarantee Fund for Micro Units (CGFMU).
21. What is margin requirement for loans above Rs.10 lakh under DAY-NRLM Scheme?
A margin not exceeding 10% of the loan amount exceeding ₹10 lakh may be obtained.
22. What is funding pattern of DAY-NRLM Scheme?
It is shared between Central Govt. and States in the ratio of 60:40 (90:10 in case of North Eastern States including Sikkim)
23. What amount of loan is eligible in DAY-NRLM Scheme for Interest subvention on Credit to Women SHG?
a) For loans up to ₹3 lakh, interest to borrower shall be 7% per annum. For outstanding credit balance upto ₹3 lakh, banks will be subvented at a uniform rate of 4.5% per annum.
b) For loans above ₹3 lakh and up to ₹5 lakh, interest rate for borrower shall be their 1 year-MCLR or any other external benchmark based lending rate or 10% per annum, whichever is lower. For outstanding credit balance above ₹3 lakh and upto ₹5 lakh, banks will be subvented at a uniform rate of 5% per annum.
24. What is provision for Interest Subvention on Prompt Repayment?
Women entrepreneurs making prompt repayment will be provided 2% interest subvention