Mission Shakti Loan – State Interest Subvention
“Mission Shakti” has been a noteworthy endeavour for women’s empowerment in the State of Odisha. Under Mission Shakti, the SHG-Bank Linkage Programme is a major Financial Inclusion initiative.
Aiming at ensuring affordable credit to women Self Help Groups, thereby promoting sustainable livelihood of members, the Interest Subvention Scheme was introduced by the State Government in the year 2013 where loans to SHGs were provided at an annual interest of 2% for loans upto Rs. 3 lakhs. Subsequently, to encourage SHGs to invest more capital in livelihood activities, the effective annual interest rate was reduced to 1% for women SHGs in the State, for loans up to Rs 3 lakhs from 1st April 2015. Considering the increase in credit off take and to reduce the interest burden, the scheme was revised in 2019 with 0% rate of interest per annum provided the loans are repaid on time. This facility is available for loans up to Rs. 3 lakhs and applicable to both rural & urban SHGs irrespective of their promoting agency.
For better visibility, creation of greater awareness among women SHGs, increased response of banks to SHG Bank linkage and improved monitoring, the State Government has renamed the Interest Subvention Scheme as “Mission Shakti Loan” – Interest free loan for women SHGs.
From 1st April 2019 the effective rate of interest to women SHGs for loans upto Rs. 3 lakh will be at 0% (interest free) with other conditionalities remaining the same.
Scheduled Commercial Banks (Public Sector Banks, Private Sector Banks, and Regional Rural Banks) and Co-operative banks, who are operating on the Core Banking Solutions (CBS) can participate and avail the interest subvention under the scheme.