Comprehensive Rural Development Through Credit


  • Objective

    • The objective of the scheme is to provide credit for the promotion of agriculture, allied activities, SSI, including cottage industries/village industries, handicrafts and other rural crafts and allied activities in rural areas with a view to promote the integrated rural development and securing prosperity in rural areas.

    • NABARD (then ARDC) provides refinance facility for the same, since 1978-79.

    • The Government since 1/4/99 has decided to merge various self employment programme (viz.IRDP, DWCRA, TRYSEM, SITRA, GKY and MWS) into a new scheme called SGSY (Swarnajayanti Gram Swarozgar Yojana)

    • The new scheme will cover 30% of the poor in each block in next 5 years.

    • Every assisted family, is to brought above the poverty line in 3 years.

  • Salient features of SGSY:

    • Covers all aspects of self-employment,viz.organisation of SHG,training,credit,technology upgradation,infrastructure and marketing.

    • Focus the activities on cluster approach.

    • Importance to group approach through SHG,individual projects are also considered.

    • Credit will be a critical component.

    • More involvement for banks in implementation.

    • The programme will be implemented by integrating with Block Plans.

    • Exclusive women groups in addition to groups involving women.

    • The list of families assisted will be from the BPL (Below Poverty Level) as identified by the Grama Sabha under the BPL Census.

    • Credit cum subsidy programme. Credit will be critical component and subsidy only a minor component.

    • Promotes multiple credit rather than one time credit-under IRDP.

  • Selection of Beneficiaries

    • Beneficiaries will be selected from the BPL list of Grama Sabha.

    • Selection will be done by the block level SGSY committee constituted for the purpose under the chairmanship of Block level Panchayat President.

    • The coverage of vulnerable groups among rural poor will be;50% by SC/ST,40% by Women and 3% by Disabled

    • Family having an annual income below the poverty line of Rs.11000/-(at 1991- 92 price level)eligible for assistance under IRDP has now modified as per capita monthly expenditure basis of Rs.327.48(for Kerala at 1996-97 prices)

  • Identification of Services:

    The district level technical group constituted should prepare model project profiles for financing, all land based/farm activities and activities in ISB sector.

  • Quantum of Investment

    • Per family/enterprise investment under IRDP should be sufficiently enlarged by increasing credit and subsidy.

    • The banks should provide adequate credit, irrespective of proportionate increase in subsidy component.

    • The working capital requirement should be fully taken into account while sanctioning loans and its availability to be ensured.

  • Subsidy eligible

    • The subsidy eligible under IRDP will be as follows

      Individual Projects 30 % of project costs with a maximum of Rs.7500/-
      SC / ST 50% of project costs with a maximum of Rs.10000/-
      Group activities (SHG) 50% of project costs with a maximum of Rs.125000/-
    • There will not be any upper limit on subsidy for irrigation projects.

    • Back ended subsidy system to be followed for the administration of subsidy under the scheme.

  • Security norms

    • The limit for obtaining mortgage is fixed for loan above Rs.25000/- vide NABARD Mumbai letter dated 06/03/1997.

    • The security norms as prescribed by KSCARDB under the IRDP/Schemes to be followed.

  • Mode of Repayment

    • The bank should fix realistic repayment schedule after taking into consideration of the level of income generation and economic life of assets.

    • The minimum period for IRDP loans may be fixed at 5 years, with initial grace wherever required.

    • The maximum repayment period will be 15 years under farm sector and 10 years under non-farm sector loans

    • The rate of interest will be as fixed by KSCARDB from time to time as per guidelines issued by NABARD/RRI.

  • Monitoring and Reporting System

    • The scheme will be monitored at Block level,District Level and State level by the respective committees constituted for the purpose.

    • The monthly progress statement under IRDP/SGSY to be furnished through the controlling officers to the respective review committees.

    • The monthly loan disbursement statement to be furnished to KSCARDB for drawals of refinance in the prescribed format.