From UPSC perspective, the following things are important :
Prelims level : Various schemes mentioned
Mains level : Credit facilities for EWS in India
- In terms of RBI guidelines on Priority Sector Lending (PSL) a target of 40 percent of Adjusted Net Bank Credit (ANBC) or Credit Equivalent amount of Off-Balance Sheet Exposures (OBE), whichever is higher has been mandated for lending to the priority sector.
- This has been mandated for all domestic Scheduled Commercial Banks and Foreign Banks with 20 branches and above.
Various schemes for benefitting poor people are as under:
Pradhan Mantri Mudra Yojana (PMMY)
- It provides access to institutional finance to unfunded micro / small business units by extending loans upto Rs.10 lakh for manufacturing, processing, trading, services and activities allied to agriculture.
- These loans are given by Commercial Banks, RRBs, Small Finance Banks, Cooperative Banks, MFIs and NBFCs.
- The borrower can approach any of the lending institutions mentioned above or can apply online through its portal.
Pradhan Mantri Awas Yojana – Urban (PMAY-U)
- The mission aims to provide assistance to all States/UTs in addressing the housing requirement of urban poor including EWS/ Low Income Group (LIG).
- This scheme is converged with other schemes to ensure houses have a toilet, Saubhagya Yojana electricity connection, Ujjwala Yojana LPG gas connection, access to drinking water and Jan Dhan banking facilities, etc.
Central Sector Interest Subsidy Scheme (CSIS)
- It is an unique Scheme which pivots around the vision that no student desiring to pursue higher education is denied of the opportunity if he/ she is financially poor.
- This Scheme benefits all categories of EWS students for pursuing professional/ technical courses in lndia and intends to provide affordable higher education.
- Under this scheme full interest subsidy on educational loans upto Rs 7.50 lakh is available during the period of moratorium on loans availed under the Indian Banks’ Association (IBA) Model Education Loan Scheme from Scheduled Banks.
Deendayal Antyodaya Yojana- National Rural Livelihoods Mission (DAY-NRLM)
- It aims at promoting poverty reduction through building strong institutions of the poor, particularly women and enabling these institutions to access a range of financial services and livelihood services.
- DAY-NRLM has a provision for interest subvention, to cover the difference between the Lending Rate of the banks and 7% per annum, on all credit availed by women Self Help Groups (SHGs)
- It permits a maximum loan of Rs. 3 Lakh per SHG.
- Further there is also provision of additional interest subvention of 3% for all prompt payee SHG accounts in selected 250 districts.
Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM)
- It is a centrally sponsored scheme to reduce poverty and vulnerability of the urban poor households by enabling them to access gainful self-employment and skilled wage employment opportunities.
Differential Rate of Interest (DRI) Scheme
- Under the DRI Scheme, banks provide finance up to ₹15,000/- at a concessional rate of interest of 4 percent per annum to the weaker sections of the community for engaging in productive and gainful activities.