Ministry of Rural Development (MoRD) and State Bank of India (SBI) have signed a Memorandum of Understanding (MoU) to provide loans to rural Self-Help Groups (SHGs).
- The MoU was signed by Charanjit Singh, Additional Secretary Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM) and Shantanu Pendsey, Chief General Manager (SBI).
SBI unveils Specialised financial product:
SBI launched Svyam Siddha, a specialised financial product developed exclusively for women Self-Help Groups (SHGs).
Features of Svyam Siddha:
i.Its main purpose is to provide access of financial assistance up to Rs 5 lakh to women entrepreneurs.
ii.It will help to reduce the challenges related to extensive documentation required for bank loan applications and reduce the Turnaround Time (TAT).
iii.It will provide hassle free application process where simple loan application with KYC (Know Your Customer) details can be submitted at local SBI branches.
iv.DAY-NRLM will monitor loan application process as well as loan repayment.
Launch of Training Toolkit Package:
Training Toolkit Package was launched to encourage SHG women entrepreneurs to get access to formal financial assistance in form of loans.
Key Points:
i.It is developed in collaboration with International Finance Corporation (IFC) under World Bank aided National Rural Economic Transformation Project (NRETP).
Aim: To expand the capacities of State Rural Livelihood Mission (SRLM) to provide access to financial assistance by SHG members for their economic enterprises.
About NRETP:
NRETP was launched under DAY-NRLM with the financial assistance from World Bank.
- The Total budget estimated for the project was USD500 million and World Bank will provide loan assistance of USD250 million for its implementation
About DeenDayal Antyodaya Yojana-National Rural Livelihood Mission (DAY-NRLM):
DAY-NRLM was launched in 2011 by Union Ministry Rural Development, India. It is a centrally sponsored programme.
Aim: To eliminate rural poverty by promoting various livelihoods and improving access to financial services for the rural households across the country.
Target: It set the target to cover 7 crore poor rural households across 600 districts, 6000 blocks and 6 lakh villages in India through SHGs and support their livelihoods for a period of 8 to 10 years.
About Ministry of Rural Development:
Union Minister: Giriraj Singh(Lok Sabha Constituency: Begusarai, Bihar)
Minister of State (MoS): Sadhvi Niranjan Jyoti(Lok Sabha Constituency: Fatehpur, Uttar Pradesh) and Faggan Singh Kulaste (Mandla, Madhya Pradesh)
About State Bank of India:
Chairman – Dinesh Kumar Khara
Headquarters – Mumbai, Maharashtra
Established in – 1955
