- The limit of collateral-free loans is increased under the DAY-NRLM (Deendayal Antyodaya Yojana – National Rural Livelihoods Mission).
- The RBI has raised the limit from Rs 10 lakhs to Rs 20 lakhs for the same.
- Under this provision, for loans upto Rs 10 lakhs, no collateral and no margin will be charged. Also, no lien will be marked against the savings bank account of SHGs and no deposits will be insisted to sanction the amount of the loan upto Rs 10 lakh.
- Whereas, for the loan amount above Rs 10 lakhs and up to Rs 20 lakh, no collateral will be charged and no lien will be marked against the savings bank account of SHGs.
- The entire loan amount which is irrespective of loan outstanding, even if it goes below Rs 10 lakhs would be eligible to have coverage under Credit Guarantee Fund for Micro Units (CGFMU).
- The DAY-NRLM is an initiative of GOI to reduce poverty in India by adopting a demand-driven approach which will allow states to frame their poverty reduction action plans.
- The main reason behind increasing the loan limit is to reduce poverty by framing institutional platforms for the poor communities, women so that they can access financial needs to sustain their livelihood.
- Static Part:
- HQ of RBI: Mumbai
- Governor of RBI: Shaktikanta Das
Question:
Q.1 RBI has raised the collateral-free loans to limit to SHGs from Rs 10 lakhs to Rs __ under DAY-NRLM?
a. Rs 15 lakhs
b. Rs 12 lakhs
c. Rs 18 lakhs
d. Rs 20 lakhs
a. Rs 15 lakhs
b. Rs 12 lakhs
c. Rs 18 lakhs
d. Rs 20 lakhs
