Government to implement new financial model for interest subvention for SC/OBC SHGs

NEW DELHI: The government will implement a new financial model for interest subvention for individual beneficiaries as well as Self-Help Groups (SHGs) comprising people belonging to Scheduled Caste and OBC categories.

In a written reply to Lok Sabha, Minister of State for Social Justice and Environment Krishan Pal Gurjar said the National Scheduled Castes Finance and Development Corporation (NSCFDC) will be the implementing agency for SC SHGs/beneficiaries and the National Backward Classes Finance and Development Corporation (NBCFDC) will be implementing agency for OBC SHGs/beneficiaries.

"The Ministry of Social Justice and Empowerment is going to implement a new Financial Model for Interest Subvention for individual beneficiaries as well as the Self-Help Groups (SHGs) comprising exclusively of SC and OBC categories," Gurjar said.

"The objective of the model is to provide direct benefit of lower rate of interest to the eligible SHGs formed under National Rural Livelihood Mission (NRLM) or National Urban Livelihood Mission (NULM) or NABARD/individual beneficiaries who have availed loans through Public Sector Banks (PSBs), Regional Rural Banks (RRBs) and similar financial institutions or can be referred as Lending Institutions," he said.