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PSU banks to give loans to women groups at 7%: RBI

Public sector banks to provide loans to women self help groups at a rate of 7 per cent per annum

November 20, 2013 11:51 IST | India Infoline News Service
The Reserve Bank of India (RBI) on Tuesday directed public sector banks (PSBs) to provide loans to women self help groups at a rate of 7 per cent per annum so as to get the benefit of interest rate subvention scheme under the Swarnajayanti Gram Swarozgar Yojana-Aajeevika (SGSY) scheme.

"PSBs will be subvented to the extent of difference between the Weighted Average Interest charged and 7 per cent subject to the maximum limit of 5.5 per cent, for the FY-2014. This subvention will be available to all the PSBs on the condition that they make SHG (self help group) credit available at 7 per cent in the 150 districts," the RBI said in a notification.

Likewise, the regional rural banks (RRBs) will be subvented to the extent of difference between the lending rates and 7 per cent for the FY-2014 on the condition they make SHG credit available at 7 per cent, it added.



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