Rural Ministry signs MoU with 10 banks to promote individual financing for higher order enterprises

Deendayal Antyodaya Yojana-National Rural Livelihood Mission (DAY NRLM) under the Ministry of Rural Development signed a Memorandum of Understanding with nine Public Sector Banks and one Private Bank.

These Banks are Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Indian Bank, Indian Overseas Bank, Punjab National Bank, UCO Bank and IDBI Bank Limited.

These Banks have designed specific products for financing individual women entrepreneurs under the fold of DAY-NRLM. The loan products so designed will help women avail bigger ticket-size loans for scaling up their enterprises.

This move is in line with the realization of the goal of making Lakhpati Didi, as announced by Prime Minister Shri Narendra Modi.

Secretary, of Rural Development Shri Shailesh Kumar Singh advised Banks to leverage this opportunity to fund women SHG members with improved assets to start their economic activities in rural areas. This initiative will go a long way in providing employment in the rural areas and a number of women SHG members will be benefitted. 

Additional Secretary, of Rural Development Shri Charanjit Singh said that banks to make their branch officials aware of the specific products designed by them so that rural women do not face difficulty in getting finance at the branch level.

DAY NRLM has witnessed SHG Bank linkage grow leaps and bounds as the program evolved. More than Rs. 9.5 crore loans have been extended by Banks to the self-help groups since the start of the Mission.

The move to extend individual loans is a strategic shift in the programme indicating how women have graduated from small enterprises and are aspiring to scale up higher order enterprises.