Lok Sabha Question No. 2571 (UNSTARRED), answered on 2016-12-01
Subject: Self-Help Groups under Rural Schemes
Ministry: RURAL DEVELOPMENT
Asked by: SUKENDER REDDY GUTHA

## GOVERNMENT OF INDIA MINISTRY OF RURAL DEVELOPMENT DEPARTMENT OF RURAL DEVELOPMENT

## LOK SABHA UNSTARRED QUESTION NO .2571

TO BE ANSWERED ON 01.1 2.2016

## SELF - HELP GROUPS UNDER RURAL SCHEMES

## 2571. SHRI GUTHA SUKENDER REDDY:

Will the Minister of RURAL DEVELOPMENT be pleased to state:

- (a) whether the Government proposes to ensure livelihood security and lift income by giving a retail push for handicrafts;
- (b) if so, the details thereof;
- (c) the  incentives  being  offered  to  the  Self - Help  Group s  (SHGs)  to  ensure  their livelihood; and
- (d) the manner in which the Union Government proposes to make the SHGs to suppor themselves to increase their income?

## ANSWER MINISTER OF STATE IN THE MINISTRY OF RURAL DEVELOPMENT ( SHRI RAM KRIPAL YADAV )

(a) to (d) : In order to raise the income level of Self Help Groups, the opportuni marketing of handicraft products at various important places in the country in Gand Bazar,  Craft  Bazaar,  Thematic  Exhibitions,  National  Handicraft  Fairs,  Exhibiti is provided. The SHGs are formed in various craft cluster areas of the country under ShashktikaranYojana which aim to promote cluster artisans/SHGs through participati craftsperson at all stages of implementation of the scheme with the ultima te objective of their empowerment and sustainability. The SHG members are provided skill upgradation training, design & technology development and participation in marketing exhibitions to ensur livelihood and increase in income. During the training, they are provided stipend for wage compensation.  During participation in exhibitions at various places, the SHGs are travelling allowance and dearness allowance & stalls without charging any rent. Fur Ministry  of  Rural  Development  provi des  assistance  to  the  States  for  organising  Region SARAS  Fairs  so  as  to  support  the  SHGs  for  marketing  their  products.  In  addition, Deendayal  AntyodayaYojana -National  Rural  Livelihoods  Mission  (DAY -NRLM) financial assistance is given to SHGs in the following forms: -

- (i)  Revolving  Fund : -Under DAY - NRLM, financial assistance upto Rs. 15,000/ - per Self Help  Group  is  provided  as  Revolving  Fund  to  all  DAY - NRLM  compliant  SHGs  in  the country.
- (ii) Community  Investment  Fund : - Under  DAY - NRLM,  financial  assistance uptoRs. 2.5 lakh is given per Self Help Group as Community Investment Fund which also include f for Vulnerability Reduction) through SHGs/primary level federations / village organi

(iii) Interest Subventio n:For taking up various livelihoods, the SHGs are linked to ba for loans. Interest subvention is provided to women SHGs to cover the difference bet bank's lending rate of  interest and 7%, on credit availed by the SHGs from the banks for a maximum of Rs 3, 00,000 per SHG. This is available across the country in two ways:

## Category I:

- ( a) Applicable to category I districts -250 most backward districts.
- ( b) All women SHGs can avail loans upto Rs 3 lakhs at 7 percent interest per annum.
- ( c) All women SHGs will also be eligible to an additional interest subve of 3% on prompt repayment, reducing the effective rate to 4%.

## Category II:

In  the  remaining  districts,  on  prompt  repayment,  all  women  SHGs  under  NRLM  will eligible for interest subvention to the extent of the difference between the Banks' lending rate and 7% subject to a maximum of 5.5%.

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