A flagship program aimed at reducing rural poverty by promoting self-employment and livelihood opportunities. It organises rural poor households into Self-Help Groups (SHGs) and provides them with financial inclusion, skill development, and institutional support.
Benefits and conditions
SHG Formation and Revolving Fund
Support for formation of Self-Help Groups with revolving fund and Community Investment Support Fund (CIF) for collective activities.
Varies by state and group size (One-time / Revolving)
Interest Subvention on Bank Loans
Women SHGs receive interest subvention on bank loans up to ₹3 lakh at 7% p.a. Additional 3% subvention on prompt repayment reduces effective rate to 4%.
Up to ₹3,00,000 per SHG (Per loan cycle)
Eligibility requirements
- Minimum Age: 18
- Gender: Any (primarily women-focused)
- Citizenship: Indian
- Residency: India
- Urban Rural: Rural
- Occupation: Any
- Social Category: SC
- Social Category: ST
- Social Category: OBC
- Social Category: General
- Social Category: EWS
- Government Employee Allowed: Yes
- Income Tax Payer Allowed: Yes
- Property Restrictions: Must be from a rural household identified as poor through PIP process or BPL list
- Bank Account Required: Yes
- Aadhaar Required: Yes
- Mobile Required: Yes
Exclusions
- Urban resident
- Not willing to join a Self-Help Group
- Household not identified as poor through PIP/BPL process
Required documents
- Aadhaar Card
- Bank Passbook
- BPL Card / SECC Data / PIP Verification (if applicable)
- Passport-sized Photographs
- Mobile Number
How to apply
- Modes: Offline (Gram Panchayat / Block Office)
- Steps — Mode: Through Gram Panchayat / Block Office
- Steps — Steps: Contact your local Gram Panchayat or Block Development Office
- Steps — Steps: Express interest in joining or forming an SHG
- Steps — Steps: Submit Aadhaar and basic details
- Steps — Steps: Attend community mobilisation meeting
- Steps — Steps: Join SHG once formed and verified
- Steps — Steps: Open group savings bank account
- Steps — Steps: Access revolving fund and bank linkage
Official application portal or instructions
Sources and claim verification
