Official Name
- Credit Linkage Programme under Deendayal Antyodaya Yojana - National Urban Livelihoods Mission (DAY-NULM)/National Rural Livelihoods Mission (NRLM)
Brief
The Credit Linkage to Self Help Groups (SHGs) is a key component under livelihood missions such as DAY-NULM and NRLM aimed at providing access to institutional credit for SHGS and their members. The programme facilitates financial inclusion, promotes entrepreneurship, and strengthens income- generating activities by enabling SHGs to access collateral-free loans from banks and financial institutions.
Implementation
- The programme is implemented through State Rural Livelihood Missions (SRLMs), State Urban Livelihood Missions (SULMs), banks, self-help group federations, and local institutions.
Benefits Offer Under the Scheme
- Access to institutional finance: SHGs receive collateral-free loans from banks to support livelihood activities.
- Financial inclusion: Encourages savings habits and integration of SHGs into formall banking systems.
- Support for income generation: Facilitates micro-enterprises, self-employment, and livelihood activities.
- Empowerment of women: Majority of SHGS consist of women, promoting financial independence and social empowerment.
- Capacity building: Training and support provided for financial literacy, enterprise development, and group management.
- Revolving fund assistance: Initial financial support to strengthen group functioning.
- Linkage with markets: Facilitation of marketing support for SHG products and services.
- Reduced dependence on informal credit: Eliminates exploitation by moneylenders and improves access to credit at reasonable rates.
- SHGS shall be eligible to avail finance after completion of 6 months from the date of commencement and maintenance of Books of Account
Eligibility
- The scheme is targeted at Self Help Groups and their members. Eligible beneficiaries generally include:
- Self Help Groups formed under NRLM/NULM frameworks.
- SHGs with regular savings and internal lending practices.
- Members belonging to economically weaker sections, including women, SC/ST, minorities, and vulnerable groups.
- SHGS maintaining proper records, meetings, and financial discipline.
- Urban and rural poor households organized into SHGS.
Application Details
Where to Apply
- Banks and financial institutions
- State Rural Livelihood Mission (SRLM) offices
- Urban Local Bodies/State Urban Livelihood Missions
- Self Help Group federations
- Common Service Centres (CSCs)
How to apply/process
- SHGS are formed and nurtured under livelihood missions and start regular savings activities.
- The SHG becomes eligible for bank linkage after demonstrating financial discipline.
- Application for loan is submitted to banks through SHG representatives or mission officials.
- Banks assess creditworthiness and approve loan without collateral (as per guidelines)
- Loan is disbursed to SHG bank account.
- SHGutilizes funds for livelihood and income-generating activities.
- Monitoring is carried out by banks, mission staff, and local institutions.
NRLM
Link
NULM
Link
myScheme Portal
Link