DIFFERENTIAL RATE OF INTEREST SCHEME

Scheme launched in: 1972

Objective: Credit support to Poorest of the poor and to bring them above Poverty Line

Eligibility: Individuals whose annual family income do not exceed Rs 18000 in Rural areas & Rs 24000 in semi-urban areas. Individual whose land holding does not exceed 1 Acre of irrigated and 2.5 Acres of un-irrigated land

Maximum Quantum of loan:  Rs 15000 as composite loan for productive purpose. Rs 20000 for housing purpose .

Margin:NIL

Security: No collateral


Rate of Interest: 4.00% per annum (Simple Interest)

Repayment: Maximum 5 years including grace period of 1-2 years depending on the type of activity and income generation.

Yearly Target: Amount: 1% of Previous Year’s Gross Credit

No of Accounts: 10 DRI Accounts per Branch