Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM, Aajeevika)
Funded in the 2026-27 Union Budget: Union Expenditure Budget 2026-27 (Feb 2026, Demand No. 87 (Department of Rural Development), item 12 Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM), BE 2026-27 ₹19,200.00 crore; Notes item 12)
Rural women who join a self-help group (SHG) under DAY-NRLM get a Revolving Fund of about ₹20,000–30,000 per group, loans from a Community Investment Fund of up to ₹2.5 lakh per group through their federation, and bank loans up to ₹3 lakh at 7% interest.
- Lead benefit
- ₹20,000–30,000Revolving Fund per SHG (average)
- Components
- 6each read from the document
- Who can apply
- 2kinds of applicant
- Closing date
- Noneapply any time
What it pays
Each women SHG gets a Revolving Fund, on average ₹20,000 to ₹30,000, which stays with the group for loans among its members.
What the document says, word for word
The page gives an average size, not a fixed amount; the exact sum is set by your State Rural Livelihoods Mission.
“This is a permanent fund of the SHG. It resides with Self Help Group and is used for interloaning among the members of the Self Help Group. The average size of the Revolving Fund is Rs. 20,000/- to Rs. 30,000/- per Self Help Group.”Up to ₹2.5 lakh per SHG is given to the group’s Cluster Level Federation (or Village Organisation), which lends it to SHGs against their micro-credit plans, including for farm livelihoods.
What the document says, word for word
This is a loan fund, not a grant to the SHG: the federation keeps it in perpetuity and lends it on (RBI Master Circular para 5, p.3).
“Community Investment Fund is extended to SHG federations which will be used to advance the loans to SHGs for undertaking socio-economic activities as per micro – credit /investment plan (MCP). An amount up to Rs. 2.50 lakh per SHG is given directly to the Cluster Level Federations (Village Organisations, in case CLF is not yet formed).”A women SHG under DAY-NRLM in a rural area pays only 7% a year on bank loans up to ₹3 lakh; the government pays the bank 4.5% a year on the balance up to ₹3 lakh.
What the document says, word for word
The circular prints the 4.5% bank subvention for FY 2025-26; the Expenditure Budget 2026-27 (Notes item 12, p.291) repeats loans up to ₹3 lakh at 7% for 2026-27. Paid only while the loan account is standard, not NPA (Annex II(iv)).
“ii. For loans up to ₹3 lakh under the scheme, banks will extend credit at a concessional interest rate of 7% per annum. For outstanding credit balance up to ₹3 lakh, banks will be subvented at a uniform rate of 4.5% per annum during FY 2025-26.”For SHG loans above ₹3 lakh and up to ₹5 lakh, the bank charges no more than its 1-year MCLR (or external benchmark rate) or 10% a year, whichever is lower.
What the document says, word for word
“iii. For loans above ₹3 lakh and up to ₹5 lakh under the scheme, banks will extend credit at interest rate equivalent to their 1 year-MCLR or any other external benchmark-based lending rate or 10% per annum, whichever is lower. For outstanding credit balance above ₹3 lakh and up to ₹5 lakh, banks will be subvented at a uniform rate of 5% per annum during FY 2025-26.”A woman member of a DAY-NRLM SHG who takes an individual bank loan for her enterprise and repays on time gets 2% a year off the interest on up to ₹1.5 lakh, for up to 3 years, once in her life.
What the document says, word for word
Only for women members of SHGs under DAY-NRLM in rural areas, on enterprise loans priced at no more than 1-year MCLR + 3% or 14% a year (2(i), (iii)); given to a person only once (2(ii)).
“(viii) Lending Institutions can claim interest subvention of 2% per annum on maximum outstanding loan of ₹1.5 lakh per borrower for a maximum tenure of 3 years. In case of loan outstanding amount exceeding ₹1.5 lakh, interest subvention will be limited to the ceiling of ₹1.5 lakh only.”A women Producer Group that pools members’ produce to sell together can get up to ₹2 lakh for working capital and infrastructure.
What the document says, word for word
“The Producer Groups are small-sized, unregistered entities with scope for significant business transactions. At the village level, PGs can aggregate the commodities and collectively sell them in the market, with better price negotiation and higher price realization. There is a provision of Rs. 2 Lakh per PG which includes working capital and infrastructure fund, for sustaining their business.”How much can I claim?
This clause does not fund this applicant type (Revolving Fund (RF)).
The page gives an average size, not a fixed amount; the exact sum is set by your State Rural Livelihoods Mission.
Who can apply
- Self-help group
- Woman farmer
Papers you need
- KYC papers of every group member, as the bank asks under RBI's KYC rules
- The group's PAN card, or Form 60 if the group has no PAN
- The group's books of account showing at least 6 months of regular working (for a bank loan)
How to apply
- Join or form a women’s self-help group in your village with help from the block’s DAY-NRLM (Aajeevika / State Rural Livelihoods Mission) staff; the group is entered on the DAY-NRLM SHG database (RBI Master Circular Annex II(v)).
- Open the group’s savings account in a bank; the Revolving Fund is a permanent fund kept by the SHG for loans among its members (Financial Assistance page).
- Prepare the group’s micro-credit plan; the Village Organisation or Cluster Level Federation lends from the Community Investment Fund against it (Financial Assistance page).
- For a bank loan, apply through your bank branch with the group’s DAY-NRLM code; the bank charges 7% a year on loans up to ₹3 lakh and claims the subvention itself (Annex II(ii), (vii)).
Applying is free. Never pay anyone to apply for you.
When to apply
The guidelines set no closing date.
Combining with other schemes
The documents do not say whether this can be combined with other schemes. Ask the implementing office before you count on both.