Loan repayment rate by SHGs to Banks is 97.71 %

In a written reply to a question in Rajya Sabha today, the Union Minister of State for Rural Development Sadhvi Niranjan Jyoti informed that the Loans are sanctioned by the banks in the name of Self Help Groups(SHGs). The distribution of loan to individual SHG members is done by the SHG, which is used by them for various activities. It is stated in the written reply that the loans outstanding to Self Help Groups (SHGs) as on 30^th November, 2022 is Rs. 1,68,920.11 Crores.  The Loan repayment rate by SHGs to Banks is 97.71% as on 30^th November, 2022.

The Minister of State informed that the Ministry has commissioned several impact evaluation studies to understand the overall impact of the Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM). An impact evaluation study of DAY-NRLM was conducted during 2019-20 by the International Initiative for Impact Evaluation (3ie) with the support of the World Bank. The assessment covered 9 states with around 27,000 respondents and 5,000 SHGs across Bihar, West Bengal, Odisha, Jharkhand, Madhya Pradesh, Chhattisgarh, Maharashtra, Rajasthan and Uttar Pradesh. The evaluation indicates that an additional exposure to the Mission for 2.5 years led to:

1. Increase in income by 19% over the base amount.
2. Decline in share of informal loans by 20%
3. Increase in savings by 28%
4. Improved labour force participation – proportion of females reporting secondary occupation is higher (4%) in treatment areas.
5. Improved access to other Schemes – Significant increase in number of social schemes availed by treatment households (6.5% higher over the base value of 2.8 schemes).

The State-wise details of loan outstanding with SHGs as per the data on the Bank Linkage portal of the Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM) as on 30th November, 2022 is placed is as follows-

(Amount Rs. in Crores)