**Summary:**
The Ministry of Rural Development is actively working to enhance credit access for rural women through Self Help Groups (SHGs) under the Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM). As of August 8, 2025, banks have cumulatively disbursed Rs. 11,07,479.60 crores in loans to women SHGs, with an outstanding amount of Rs. 2,99,833.35 crores.
The government's approach includes strategic and operational level engagement with financial regulators and commercial banks through workshops, consultative forums, and capacity building programs. Key initiatives include:
* Annual Master Circulars: The Reserve Bank of India (RBI) issues annual Master Circulars for Public Sector Banks, Private Banks, and Small Financing Banks, while the National Bank for Agriculture and Rural Development (NABARD) issues similar circulars for Regional Rural Banks (RRBs) and Cooperative banks. Links to the circulars are provided. The RBI circular can be found at https:www.rbi.org.inScriptsBSViewMasCirculardetails.aspxid12806 and the NABARD circular can be found at https:www.nabard.orgCircularPage.aspxcid504id17459
* Central Level Coordination Committee: An annual meeting chaired by the Secretary of Rural Development is held with Banks, RBI, NABARD, and other relevant Ministries/Departments.
* SHG Bank Linkage Consultation: Consultation meetings on SHG Bank Linkage are held with Public Sector Banks, Private Banks, Chairpersons of RRBs, Cooperative Banks, and State Rural Livelihoods Missions (SRLMs).
* Dedicated Staff and Community Based Repayment Mechanism (CBRM): Dedicated staff at the district level and Bank Sakhis at the branch level facilitate loan applications. CBRM has been instituted to ensure regular loan repayment.
* NRLM SHG Bank Linkage Portal: A dedicated portal (banklinkage.lokos.in) monitors SHG-Bank Linkage progress and tracks loan repayment, sourcing data directly from banks' Core Banking Solutions (CBS). All Banks lending to SHGs share data with the portal on monthly basis.
* Banker Training: Training and orientation programs are provided to bankers for capacity building and scheme implementation.
The current Non-Performing Assets (NPA) percentage on bank loans to SHGs is 1.76%.
This information was provided by the Minister of State for Rural Development, Dr. Chandra Sekhar Pemmasani, in a written reply in Rajya Sabha.
Key Entities Referenced
Ministry of Rural Development: The Indian government ministry responsible for rural development programs.
Women Self Help Groups: Groups of women who pool their resources to provide financial support to each other.
Deendayal Antyodaya Yojana National Rural Livelihoods Mission: A government program aimed at poverty reduction through promotion of self-employment.
Reserve Bank of India: The central bank of India, responsible for issuing circulars on Women Self Help Groups for various banks.
National Bank for Agriculture and Rural Development: An apex development finance institution in India.
Regional Rural Banks: Rural-oriented commercial banks in India.
Public Sector Banks: Banks in India with majority government ownership.
Dr. Chandra Sekhar Pemmasani: Minister of State for Rural Development.
Ministry of Rural Development
Credit Facility to Women Self Help Groups
Posted On: 08 AUG 2025 5:28PM by PIB Delhi
The cumulative loans disbursed by Banks to women Self Help Groups since inception of the Deendayal
AntyodayaYojana – National Rural Livelihoods Mission (DAY-NRLM) is Rs. 11,07,479.60crores and the
outstanding amount is Rs. 2,99,833.35 crores.
Following steps have been taken by the Government to facilitate and enhance access to credit for the rural
poor:
The Mission has been engaged with financial regulators and commercial banks, at strategic as well as
operational level through conduct of several workshops, consultative forums, and capacity building programs
these include: -
i. Every year, on the request of the Ministry, a Master Circular on Women Self Help Groups is issued by
Reserve Bank of India for Public Sector Banks/Private Banks and Small Financing Banks. Similar
circular is issued by the National Bank for Agriculture and Rural Development (NABARD) for Regional
Rural Banks (RRBs) and Co-operative banks.
ii. Every year under the Chairpersonship of Secretary Rural Development a Central Level Coordination
Committee meeting is held with Banks, RBI, NABARD and other Ministries/Departments.
iii. Consultation meeting on SHG Bank Linkage is held with Public Sector Banks/Private Banks/
Chairpersons of RRBs, Co-operative Banks and SRLMs from time to time.
iv. Dedicated staff are placed at district level, besides positioning bank Sakhi at branch level to facilitate
submission of loan applications which includes review, enhancements and following up. In addition,
Community Based Repayment Mechanism (CBRM) has been instituted to ensure regular repayment of
loans.
v. To monitor the progress of SHG-Bank Linkage and to keep a track of repayment of bank loan by SHGs,
a dedicated portal "NRLM SHG-Bank Linkage Portal" (banklinkage.lokos.in) has been developed. The
portal sources all its data directly from Core Banking solution (CBS) of banks. All Banks lending to
SHGs are sharing data with the portal on monthly basis.
vi. Training/orientation to Bankers is provided for their capacity building and implementation of the
Scheme.
Following instructions have been issued to the banks for providing loans under this scheme:-
Reserve Bank of India and NABARD issues master circular containing detailed instructions for financing to
women SHGs under DAY-NRLM and copy of master circular issued by RBI is available in the link:
https://www.rbi.org.in/Scripts/BS_ViewMasCirculardetails.aspx?id=12806
and circular issued by NABARD is available in the link:
https://www.nabard.org/CircularPage.aspx?cid=504&id=17459
The present percentage of Non-Performing Assets (NPA) on bank loans given to SHG is 1.76 %.
This information was given by the Minister of State for Rural Development Dr. Chandra Sekhar Pemmasani in a
written reply in Rajya Sabha today.
*******RC/KSR/AR/2373
(Release ID: 2154244)