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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.