Differential Rate of Interest
Government of India introduced Differential Rate ,of Interest (ORI) Scheme in the year 1972 for poverty alleviation. The ORI Scheme was launched to extend loans to the specified classes of beneficiaries who are poorest of the poor among the weaker sections at a highly subsidized interest rate of 4 per cent per annum to encourage underutilized talents and enterprises and to provide them opportunity to become productive entrepreneurs. The Scheme is operative throughout the country and implemented by all the Banks
Eligibility:
- Individual’s annual family income
| AREA | Annual FAMILY INCOME |
| Rural | RS. 18,000. |
| Semi Urban & Urban | RS. 24,000 |
- Land holdings should not exceed 1acre of irrigated land and 2.5 acres of unirrigated land. This criteria is not ·applicable to persons belonging to Scheduled Castes and Scheduled Tribes, however Income criteria is applicable.
- Beneficiaries of other subsidy linked schemes of Central/ State Government I State Level Corporations will not be eligible for the benefits available under this Scheme.
Purpose:
- Housing finance to SC/ ST only.
LOAN LIMIT:
| Type of LOAN | Loan Limit |
| Loan under ORI | Rs.15,000 |
| Housing Loan | Rs.20,000 |
Margin:
- Beneficiaries will not contribute any margin money
Rate of Interest:
- 4.00o/o per annum simple. No penal interest shall be charged
Security:
- Only assets created out of the loan shall be charged to the Bank
Avenues for deployment:
- Branch Managers themselves can identify eligible beneficiaries under ORI Scheme and sanction loans as they are vested with full powers in this behalf.
- Branches can assist the handicapped for acquiring aids, appliances and equipment (needed especially by students for pursuing studies and vocational training eg: Braille Typewriters for the blind) to the extent of their actual cost but not exceeding Rs.5000 under ORI Scheme. This assistance will be independent of the productive loan limit of Rs.15000/- eligible under the Scheme.