Now self help group will get loan up to Rs 20 lakh without guarantee, RBI has taken a big decision

Now self help group will get loan up to Rs 20 lakh without guarantee, RBI has taken a big decision

DAY-NRLM: For Self Help Groups (SHGs), no guarantee will be taken on loans above Rs 10 lakh and up to Rs 20 lakh, nor will any claim be written on their savings bank account.

reserve Bank of India

The Reserve Bank of India (RBI) has increased the mortgage or guarantee-free loan limit for Self Help Groups (SHGs) under Deendayal Antyodaya Yojana (DAY) – National Rural Livelihoods Mission (NRLM) from Rs 10 lakh to Rs 20 lakh. The central bank notified this on Monday. Day-NRLM is a flagship scheme of the Government of India to promote poverty alleviation by building strong institutions for the poor, especially women. Through this, these institutions get access to comprehensive financial services and livelihood.

In the circular issued by RBI, it has been said that for loans up to Rs 10 lakh for self-help groups, no guarantee will be required and no margin will be charged from them. Apart from this, SHGs will not be asked for any deposit while sanctioning the loan.

will get loan without guarantee

Similarly, no guarantee will be taken for SHGs for loans above Rs 10 lakh and up to Rs 20 lakh, nor will any claim be written on their savings bank account. However, the entire loan will be eligible to come under Credit Guarantee Fund for Micro Units (CGFMU). Of course, whatever the outstanding debt may be, or even if it has gone below Rs 10 lakh.

Draft proposal to liberalize foreign investment rules released

In another decision, the Reserve Bank of India issued draft guidelines to further liberalize the regulatory framework for overseas investments. This will help in improving the ease of doing business situation further. The Reserve Bank has put two documents on its website. The Draft Foreign Exchange Management (Non-Debt Instrument Foreign Investment), Rules-2021 and the Draft Foreign Exchange Management (Investment Abroad) Regulations, 2021, have been inserted.

Foreign Exchange Management (Transfer or Issuance of any Foreign Security), Regulation 2004 and Foreign Exchange Management (Acquisition and Transfer of Immovable Properties outside India) by a person resident in India ), Regulation-2015.

The central bank said that in order to further liberalize the regulatory framework and improve the ease of doing business, it has been decided to harmonize the existing provisions governing investment operations abroad. The Reserve Bank said that the rules and regulations will be finalized after public consultation.

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