The National Rural Livelihood Mission (NRLM) is a flagship initiative by the Government of India aimed at financial inclusion and empowerment of rural communities. One of its key components is providing loans and credit support to self-help groups (SHGs), women, and marginalized entrepreneurs in villages.
NRLM loans are designed to help beneficiaries start small businesses, agricultural ventures, or service-based enterprises, thereby improving income levels and sustainable livelihoods in rural areas.
Key Features of NRLM Loans
Target Beneficiaries
Rural women and SHGs.
Small entrepreneurs and marginalized communities.
Individuals seeking self-employment opportunities.
Loan Amount
Loans typically range from ₹10,000 to ₹5 lakh, depending on project type and group eligibility.
Low Interest Rates
Concessional interest rates make repayment manageable.
Some loans are subsidized under government schemes.
Purpose of Loans
Agricultural activities, dairy farming, handicrafts, and small businesses.
Skill development and income-generating projects.
Collateral-Free Access
Many NRLM loans are zero-collateral, enabling easier access for rural borrowers.
Benefits of NRLM Loans
Financial Inclusion: Provides access to formal banking and credit facilities in rural areas.
Entrepreneurship Support: Helps rural residents start or expand small businesses.
Women Empowerment: Encourages women to become self-reliant and economically independent.
Rural Development: Enhances income, reduces poverty, and promotes sustainable livelihoods.
FAQs
1. Who can apply for NRLM loans?
Primarily rural women, SHGs, and marginalized communities seeking self-employment opportunities.
2. What are the typical loan amounts?
Loans range from ₹10,000 to ₹5 lakh, based on eligibility and project type.
3. Are collateral requirements mandatory?
Most NRLM loans are collateral-free, especially for women and SHGs.
4. What is the interest rate on NRLM loans?
Interest rates are concessional, often subsidized under government schemes.
5. How can one apply for an NRLM loan?
Applications can be submitted through local SHG groups, village panchayats, or partner banks and microfinance institutions.
Published on : 13th September
Published by : SMITA
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