The Ministry of Rural Development and State Bank of India have officially signed a memorandum of understanding (MoU) to facilitate enterprise financing for rural self-help groups (SHGs), as per an official statement. The MoU was signed by Additional Secretary Deendayal Antyodaya Yojana – National Rural Livelihoods Mission, Charanjit Singh, and Chief General Manager, State Bank of India, Corporate office Mumbai, Shantanu Pendsey.
State Bank of India has introduced a specialized financial product, Svyam Siddha, exclusively tailored for SHG women entrepreneurs seeking loans up to Rs 5 lakhs. Shantanu Pendsey mentioned, “This initiative is designed to alleviate the challenges associated with extensive documentation requirements for bank loan applications and reduce the turnaround time (TAT).”
The new financial product simplifies the application process by eliminating burdensome documents like quotations and detailed project reports (DPRs). Pendsey explained, “It allows an easy application process where a simple loan application with KYC details can be submitted at local SBI bank branches.”
DAY-NRLM will play a crucial role in facilitating the loan application process and overseeing loan repayment through its dedicated field cadre.
A training toolkit package was also launched at the event to promote access to formal finance by SHG women entrepreneurs. Shantanu Pendsey noted, “Developed in collaboration with the International Finance Corporation (IFC) under the World Bank-funded National Rural Economic Transformation Project (NRETP), this toolkit aims to enhance the capacities of State Rural Livelihoods Missions (SRLMs) to facilitate increased access to formal finance by SHG members for their economic enterprises.”
