About National Rural Livelyhood Mission (NRLM)

NRLM is a flagship program of Govt. Of India for promoting poverty reduction through building strong institutions of the poor, particularly women, and enabling these institutions to access a range of financial services. A woman’s self-help group, coming together on the basis of mutual affinity is the primary building block of the NRLM community institutional design.

General Features of NRLM

  • Women SHGs under NRLM consist of 10-15 persons. In case of special SHGs I.e groups in the difficult areas, groups will disabld persons formed in remote tribal areas, this number may be a minimum of 5 persons.
  • SHGs under NRLM are informal groups and registration under any Societies Act, State Co-operative Act or a partnership firm is not mandatory. However, Federations of SHGs formed at village level, cluster level and at higher levels are to be registered under appropriate acts prevailing in their states.
  • NRLM has a provision for Interest Subvention, to cover the difference between the lending Rate of the Banks and 7% on the credit availed by NRLM groups, for a maximum of Rs 3,00,000/- per SHG.
  • In case of NRLM SB A/cs, Know Your Customer (KYC) verification of only the office bearers shall suffice for opening of SB A/cs
  • Bank will not insist on Permanent Account Number (PAN) of SHGs at the time of opening of A/c or transactions and may accept declaration in Form No. 60 as may be required.
  • Loan amount ranges from Rs initial 1 Lac to 10 Lacs.
  • Repayment schedule varies from 1 year to 6 years depending on loan quantum.
  • No collateral is charged against NRLM loan.