Dri Scheme Bank Loan

DRI scheme provides bank loan at a concessional rate of interest of 4% per annum for productive / self employment ventures. SC/ST, minorities and physically handicapped persons are targeted under this scheme to boost financial inclusion.

DRI Scheme Eligibility Criteria

The following categories of persons are provided bank loan under the DRI scheme:

Scheduled Cases/Scheduled Tribes and others engaged on a very modest scale in Agriculture and / or allied agricultural activities.
People who themselves collect or do elementary processing of forest products and people who themselves collect fodder in difficult areas and sell them to farmers and traders.
People physically engaged on a modest scale in the fields of cottage and rural industries and vocations - e.g.: cutting cloth and sewing garments, making reasonably cheap eatables, home delivery service of articles and commodities of daily use, running wayside tea stalls, plying of manual rickshaws and cycle rickshaws, repairing of shoes sandals mainly by hand, basket making by hand etc.
Physically handicapped persons pursuing gainful occupation.

In addition to the above, the applicant must meet the following eligibility criteria:

Family income not exceeding Rs.18, 000/- p.a. in rural areas and Rs.24, 000/- p.a. urban / semi urban areas.
Land holding does not exceed 1 acre irrigated or 2.5 acres in case of un-irrigated land.
SCs/STs are eligible for loan irrespective of their land holding, provided they satisfy other eligibility criteria.
The beneficiary largely works on his own and with such help as other members of his family.
The beneficiary should not have another source of finance while DRI loan exists.

Amount of Loan

The maximum loan provided under the DRI scheme is Rs.15000 by way of term loan and/or working capital. In the case of physically handicapped persons, a sum of Rs.5,000/- for purchase of aids, appliances and equipments may be granted, apart from the loan amount of Rs.15,000/-. In case of housing loan under DRI scheme, a maximum loan amount of Rs.20,000 is allowed.

Interest Rate

DRI scheme provides bank loan at a concessional rate of interest of 4% per annum. Loan under DRI scheme enjoy very low interest rate, less than the bank's base rate.

Repayment

DRI scheme loans have a repayment period of maximum of 5 years. In case of housing loans, the repayment period is extendable to 7 years, in hardship cases. Repayment would be fixed based on the income generation potential of the borrower on installment or EMI basis.

DRI through Institutions

DRI scheme is operated through the following institutions

Orphanages and Women’s homes.
Institutions for physically handicapped.
State Corporations for SC / ST.
State Minority Finance / Development Corporation.

Priority Sector Lending

40% of the bank credit under the scheme should flow to the eligible borrowers belonging to Scheduled Castes and Scheduled Tribes. Banks have a target of having 1% of total advances under the DRI scheme. Further, loan provided under DRI scheme fall under priority sector lending.

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Frequently Asked Questions

Common questions about DRI Scheme Bank Loan.

The DRI (Differential Rate of Interest) scheme is a government initiative that provides bank loans at a concessional rate of interest of 4% per annum for productive or self-employment ventures. It targets specific groups, such as Scheduled Castes/Scheduled Tribes, minorities, and physically handicapped persons, to promote financial inclusion.

The DRI scheme is designed for individuals engaged in agriculture, allied agricultural activities, collection or elementary processing of forest products, cottage and rural industries, vocations like tailoring, making eatables, running tea stalls, rickshaw pulling, shoe repair, and basket making. Additionally, physically handicapped persons pursuing gainful occupations are eligible. The applicant's family income should not exceed Rs.18,000 per annum in rural areas and Rs.24,000 per annum in urban or semi-urban areas.

The maximum loan amount provided under the DRI scheme is Rs.15,000 by way of term loan and/or working capital. For physically handicapped persons, an additional sum of Rs.5,000 can be granted for purchasing aids, appliances, and equipment, apart from the Rs.15,000 loan amount. In the case of housing loans under DRI, the maximum loan amount is Rs.20,000.

The repayment period for DRI scheme loans is a maximum of 5 years. For housing loans under the DRI scheme, the repayment period can be extended to 7 years in cases of hardship. The repayment is fixed based on the income generation potential of the borrower and is done through installments or EMIs (Equated Monthly Installments).

Banks have a target of having 1% of their total advances under the DRI scheme. Additionally, 40% of the bank credit under the scheme should flow to eligible borrowers belonging to Scheduled Castes and Scheduled Tribes. Loans provided under the DRI scheme fall under priority sector lending for banks.

The DRI scheme provides bank loans at a concessional rate of interest of 4% per annum. This interest rate is lower than the bank's base rate, making it an attractive option for eligible borrowers.

The DRI scheme is operated through various institutions, including orphanages and women's homes, institutions for physically handicapped persons, state corporations for Scheduled Castes/Scheduled Tribes, and state minority finance or development corporations.

For eligibility under the DRI scheme, the applicant's land holding should not exceed 1 acre of irrigated land or 2.5 acres of unirrigated land. However, Scheduled Castes/Scheduled Tribes are eligible for the loan irrespective of their land holding, provided they satisfy other eligibility criteria.

No, the DRI scheme guidelines state that the beneficiary should not have another source of finance while the DRI loan exists. This condition ensures that the scheme's benefits are directed towards the intended target groups.

The primary purpose of the DRI scheme is to promote financial inclusion by providing concessional loans to specific target groups, such as Scheduled Castes/Scheduled Tribes, minorities, and physically handicapped persons, for productive or self-employment ventures. It aims to support these communities in generating income and improving their economic conditions.