Government Sponsored Schemes

40.1 Background

National Rural Livelihoods Mission (NRLM) replaced the Swarnjayanti Gram Swarozgar Yojana (SGSY) scheme. It was subsequently renamed Deendayal Antyodaya Yojana — National Rural Livelihoods Mission (DAY-NRLM) with effect from March 29, 2016. Its objectives: (a) promoting poverty reduction through strong institutions of the poor; (b) enabling access to financial and livelihood services; (c) complementing institutional platforms with financial, productive, and market linkage support. Beneficiary composition: 50% SC/STs, 15% minorities, and 3% persons with disability.

Eligibility Criteria for Loans to SHG

• ▸Active existence for at least 6 months as per its books of account.
• ▸Qualified as per grading norms fixed by NABARD.
• ▸Practicing Panchasutras (5 disciplines as above).
• ▸Defunct SHGs may be eligible if revived and active for at least 3 months.

Cash Credit Limit (CCL) — Minimum ₹6 lakh for 3 years

Purpose of Loan & Income-Generating Portion

Security & Collateral

• ▸Up to ₹10 lakh: No collateral, no margin, no lien on savings bank account of SHGs.
• ▸₹10 lakh – ₹20 lakh: No collateral; entire loan eligible for cover under Credit Guarantee Fund for Micro Units (CGFMU).
• ▸Willful defaulters are not to be financed under DAY-NRLM.
• ▸Banks must not deny loans to entire SHG merely because individual members (or their family) are defaulters.

40.2.1 Background

Swarna Jayanti Shahari Rozgar Yojana (SJSRY) was replaced by National Urban Livelihoods Mission (NULM), which was renamed Deendayal Antyodaya Yojana — National Urban Livelihoods Mission (DAY-NULM) in February 2016. Its Self-Employment Programme (SEP) provides financial assistance (interest subsidy) to urban poor individuals and groups for setting up micro-enterprises. Women beneficiaries ≥ 30%; differently abled 5%; SCs/STs at least proportionate to their share in city population.

PMJDY is a Government of India initiative under the National Mission for Financial Inclusion. Persons without an OVD can open a 'Small Account'.

Scheme Benefits

40.3.3 Overdraft Facility in PMJDY Accounts

40.6.1 Genesis

In April 2015, Micro Units Development & Refinance Agency Ltd (MUDRA) was set up. Pradhan Mantri Mudra Yojana (PMMY) was launched simultaneously with MUDRA as the administering agency. MUDRA develops and refinances micro-enterprise lending by supporting financial institutions. Its functions include: monitoring PMMY data via web portal, extending refinance to micro enterprises, and facilitating loan guarantees under PMMY.

40.7 Khadi Village Industries Commission (KVIC)

KVIC is a statutory body. In April 1957, it took over the work of the former All India Khadi and Village Industries Board. Broad objectives: (a) Social — providing employment; (b) Economic — producing saleable articles; (c) Wider — creating self-reliance among poor; building a strong rural community spirit.

Functions include:

• ▸Programs for development of Khadi and village industries in rural areas
• ▸Creating common service facilities for processing raw materials to semi-finished goods
• ▸Building reserves of raw materials and implements for producers
• ▸Providing facilities for marketing KVI products
• ▸Providing financial assistance to institutions/individuals for KVI development and operation
• ▸Organising training of artisans

Introduced in 2008by merging Prime Minister's Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP). Currently running for FY 2021-22 to 2025-26. Implemented by KVIC at national level; State KVIC Directorates, KVIBs, District Industries Centres (DICs), and banks at state/district level. Objectives: generate employment through new self-employment ventures; bring together dispersed artisans; provide sustainable employment to arrest rural-to-urban migration; increase wage-earning capacity.

Chapter 40 in 6 Lines

1. DAY-NRLM (renamed March 2016, replaced SGSY): primary building block is women SHGs practicing Panchasutras; Revolving Fund ₹10K–₹15K per SHG; CIF in intensive blocks; interest subvention reduces borrowing cost to 7% p.a. (up to ₹3L per SHG); CCL min ₹6L for 3 years (Year-1 DP = 6× corpus or ₹1L); no collateral ≤₹10L, CGFMU cover ₹10–₹20L.
2. DAY-NULM (renamed Feb 2016, replaced SJSRY): SEP-I up to ₹2L per individual; SEP-G up to ₹2L per member or ₹10L aggregate (min 3 members; 70% urban poor); no margin ≤₹50K; repayment 5–7 years; moratorium 6–18 months; no collateral, CGTMSE cover; interest subsidy above 7% + additional 3% for WSHGs on prompt repayment.
3. PMJDY (National Mission for Financial Inclusion): zero balance; RuPay card; accident insurance ₹2L (post-Aug 2018); life insurance ₹30K; OD up to ₹10,000 (4× avg balance or 50% of 6-month credit summations, whichever lower); interest ≤2% above Base Rate; 36-month sanction; available to earning member (preferably woman); not to minors or multiple family members.
4. PMSBY: ₹20 premium; age 18–70; annual renewal; ₹2L accidental death/full disability; ₹1L partial disability; Aadhaar KYC. APY: launched 09.05.2015; PFRDA; age 18–40; income-tax payers ineligible from Oct 1, 2022; guaranteed pension ₹1K–₹5K at 60; spouse continues on premature death; govt. funds shortfall if returns below estimated.
5. MUDRA/PMMY (April 2015): Shishu ≤₹50K; Kishor ₹50K–₹5L; Tarun ₹5L–₹10L; first charge on financed assets + CGFMU cover; no collateral; refinance tenor max 36 months; for income-generating activities only; KVIC (April 1957): social/economic/wider objectives; PMEGP (2008, merged PMRY + REGP) — KVIC is nodal agency at national level.
6. PMEGP subsidy: General — 10% contribution, 15% urban/25% rural; Special — 5%, 25%/35%; manufacturing ceiling ₹50L new (₹100L upgradation), service ₹20L new (₹25L upgradation); 2nd loan subsidy 15% (20% NER/Hill); no collateral ≤₹10L; bank decision ≤30 days; scoring 50/100 min (≤₹10L) or 60/100 min (>₹10L); SRF held for 3 years (no interest).