DEENDAYAL ANTYODAYA YOJANA – NATIONAL URBAN LIVELIHOODS MISSION (DAY-NULM)​

DEENDAYAL ANTYODAYA YOJANA – NATIONAL URBAN LIVELIHOODS MISSION (DAY-NULM)

Deendayal Antyodaya Yojana- National Urban Livelihoods Mission (DAY-NULM) implemented with effect from 24.9.2013

  • No minimum educational qualification.
  • If activity requires some special skills, appropriate training must be provided to beneficiaries before extending financial support.
  • EDP for 3 to 7 days for individual & group enterprises

Individual Enterprises (SEP-I)

  • Banks may extend finance to individual for capital expenditure in the form of term Loan and working capital loans in the form of cash credit or composite loan

Eligibility

  • Urban poor desirous of setting micro enterprises
  • Attained the age of 18 years

Project cost:

  • Maximum Rs.2 lakhs

Margin:

  • 5 to 10% for loans above Rs.50000/-

Collateral security:

  • Ni Eligible units should be covered under CGTMSE scheme

Group Enterprises (SEP-G)

  • Self Help Group-(HG) or members of an SHG constituted under DAY-N.ULM ·or ··a. group of ·urban ·poor .. for. self- employment can avail benefit દf subsidized loans under this component from any bank.
  • The group will be eligible for a maximum loan of 2 Lakh per member or Rs.10 Lakh, which ever is lower.
  • Loan can be extended either as a single loan to the group functioning as one borrowing unit or each member of the group can be provided individual loans up to Rs.2 lakhs and an overall cap of Rs.10 lakhs based on the principal of joint liability of the group.

eligibility:

  • Minimum 5 members with minimum of 70% of members from urban poor families.
  • All members should ha.ve attained age of 18 years

Project cost:

  • The grQupwillbe eligible for a maximum loan of Rs. 2 Lakh per member or Rs.i0 Lakh,whichever is lower

margin: 

  • 5 to 10% for loans above rs.50000/-

Collateral security:

  • Ni Eligible units should be covered under CGTMSE scheme

SHG-Bank linkage-General Guidelines

  • Guidelines Master Circular of RBI on SHG-Bank Linkage Programmer to be followed from time to time.

  • SHGs may be sanctioned Savings Linked Loans (varying from a saving to loan ratio of 1:1to 1:4).

  • In case of matured SHGs, loans may be given beyond the limit of four times the savings as per the discretion of the bank

  • Type of Loan Facility: SHGs can avail either Term loan or a Cash Credit Limit (CCL) loan or both based on their needs. In case of need, additional loan can be sanctioned even though the previous loan is outstanding

Guidelines for prompt repayment:

  1. For Cash Credit Limit to SHGs:
    • Outstanding balance shall not have remained in excess of the sanctioned limit/drawing power continuously for more than 30 days.
    • There shall be regular credits and debits in the account. In any case there shall be at least one customer induced credit during the month.
    • Customer induced Credits during a month shall be sufficient to cover the interest debited during the month.
  2. For Term Loan to SHGs:
    • A term loan account where all of the interest payments and/or instalments of principal were paid within 30 days of the due date during the entire tenure of the loans would be considered as an account having prompt payment.

Interest subsidy:

  • Interest subsidy, over and above 7% rate of interest will be available on a bank loan for setting up of individual or group enterprises.

  • The difference between 7% p. and the rate of interest charged by the bank will be provided to banks under DAY-NULM.

  • Interest subsidy will be given only in case of timely repayment of loan. Suitable certification from banks will be obtained in this regard.

  • An additional 3 percent interest subvention will be provided to all Women Self Help Groups (WSHGs) who repay their loan in time.

  • The Interest subsidy will be subject to timely repayment of the loan (as per the loan repayment schedule) and suitable certification obtained from banks by the ULB.

  • The additional 3% interest subvention amount will be reimbursed to the eligible WSHGs. The banks should credit the amount of 3% interest subvention to the eligible WHSGs accounts and thereafter seek the reimbursement.

Self Help Group – Guidelnes:

SHG is a homogeneous group of Micro Entrepreneurs, voluntarily formed to save out of their earnings, mutually agree to contribute to a common fund of the group.

  • Membership of a Group may be 10 to 20 and members should be homogenous
  • Registration of the group required for SHGs having more than 20 members
  • Group should devise a code of conduct /bylaws to bind themselves
  • Group should maintain simple basic records such as Minutes

linkage programme:

  1. Linkage of SHG to the bank by opening an SB account in the name of SHG immediately after formation of the group.

  2. Credit linkage by giving loan to the SHG after 6 months of satisfactory operations of the SHG wit the Bank.

Purpose of the loan:

  • To meet emergent requirements of the group members or for purchase of assets I productive and income generating activities.

Extent of Loan

1st phase:

  • Subject to fulfilling grading norms, quantum of credit given to the group shall be in proportion of savings to the loan may range from 1:1 to 1:6 depending on the assessment of SHG subject to minimum Rs,.1.lakh per group

2ncl phase:

  • SHG which has taken first phase of loan, utilized properly and conducted the account satisfactorily for minimum period of six months

  • Subject to fulfilling grading norms, eligible for loan upto 1:1O times of savings with a maximum ceiling of Rs.5 lakh per group

3rd phase:

  • SHG which has taken second phase of loan, utilized properly and conducted the account satisfactorily for minimum period of twelve months ..,

  • Subject to fulfilling grading norms, eligible for loan up to 1:1O times of savings with a maximum ceiling of Rs.1O lakh per group.

Subsequent phases:

  • SHG which has taken third phase of loan, utilized properly and conducted the account satisfactorily for minimum period of twelve months

  • Subject to fulfilling grading norms, eligible for loan up to 1:10times of savings depending on the assessment of SHG

type of loan account:

  • May be as a Term loan-OR as a Cash Credit account

Security: 

  • Hypothecation of assets created out of Bank’s finance.
  • No Collateral Security: for Credit limit up to Rs.1O lakhs
  • If Credit limit is above Rs.1O lakhs, Collateral security to the extent of 10096 of loan amount

Rate of Interest (ROI):

  • Separate Roi table is available for SHGs in the interest rate circular

Charges

  • No Processing charges to be charged for limit up to Rs 3 lakhs

  • Normal processing, documentation, inspection charges have to be applied

  • In case of Cash Credit facility, Processing charges has to be charged based on the available DP for the year

Repayment:

  • In case of CC limit, each withdrawal of principal loan is to be repaid within 12 to 24 months of such withdrawal. Interest debited to the account is to be repaid I deposited promptly so that outstanding balance of the CC A/C does not exceed the sanctioned limit under no circumstances.
  • In case of Term loan, Principal loan is to be repaid in suitable equal monthly I quarterly I half yearly instalments. Interest debited to the account is to be repaid I deposited promptly

Books of accounts to be maintained

  1. Attendance Register 

    • Membership Register

    • Proceedings Book I minutes register

    • Savings Register member wise

    • credit register member wise

    • bank borrowing / deposit register etc.

Grading of SHG

  • Only A & B graded SHG is to be considered for credit linkage (both for fresh & Repeated linkage)

Other conditions

  • Open SB account in the name of SHGs and not in the name of any member I leaders