Banking

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Deendayal Antyodaya Yojana -

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 LAUNCHING & IMPLEMENTING AGENCY
 Government of India, Ministry of Housing and Urban Poverty
Alleviation (UPA Division) has restructured the existing Swarna Jayanti
Shahari Rozgar Yojana (SJSRY) and launched the NULM w.e.f. 24.09.2013.
Scheme is operative in all districts headquarters irrespective of its
population and all cities with population of 1 lakh or more.
The Mission with enhanced scope was renamed as “Deendayal
Antyodaya Yojana -National Urban Livelihoods Mission (DAY-NULM)”
wef dated February 19, 2016.
The Self Employment Programme (SEP) component of NULM will focus
on providing financial assistance through a provision of interest subsidy
on loans to support establishment of individuals and Group Enterprises
and SHGs of urban poor.
 TARGET & FEATURES OF DAY- NULM
Target of DAY – NULM:
Minimum percentage of women beneficiaries under Self Employment
Programme (SEP) shall not be less than 30%,
SC/ST must be benefited at least to the extent of the proportion of
their strength in the city/town population of poor,
3% for PWD,
15% for minority community.
Selection of Beneficiary:
The loan application will be recommended by task force.
No minimum educational qualifications.
Financial assistance should be extended only after the prospective
beneficiary has acquired required skills training for running the
proposed micro-enterprise.
In addition to skill training of the beneficiaries, the Urban Local Body
(ULB) will also arrange to conduct EDP Programme for 3-7 days.
 DAY- NULM_TASK FORCE
The indicative composition of the Task Force is as follows
TASK Force at ULB level Role
Chief Executive Officer (CEO) ULB/ Municipal Chairman
Commissioner of Urban Local Body
City Project Officer, ULB /or any authorized Member Convener
representative of ULB
Lead District Manager Member
Representative from District Industries Centre (DIC) Member
Senior Branch Managers (Max.2) of banks Member
Representative (2) of Area Level Federation/Civil Member
Level Federation

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 INTEREST SUBVENTION
a) The difference between 7% p.a. and the prevailing
It is to be provided to banks under NULM.
b) An additional 3 percent interest subvention will
be provided to all Women Self Help Groups
(WSHGs) who repay their loan in time.
c) After disbursement of loan to the beneficiaries,
the concerned branch of the bank will send
details of disbursed loan cases to ULB along with
details of interest subsidy amount.
d) Claim of interest subvention- quarterly basis.
 LOAN TO INDIVIDUAL
Eligibility: An urban poor individual for setting up a micro-enterprises for
self employment.
Age: beneficiary should have attained 18 years age.
Project Cost: The maximum unit project cost for individual micro-
enterprises cases is Rs. 2.00 lakh.
Collateral on Bank Loan: No collateral security required. Banks are
mandated not to accept collateral security in the cases of loans up to Rs.
10 lakh extended to units in the MSE Sector. Therefore only the assets
created would be hypothecated/ mortgaged/pledged to banks for
advancing loans.
Margin: Nil margin up to Rs. 50,000. Above Rs. 50,000 – 5 to 10% of the P.C.
Repayment: 5 to 7 years after initial moratorium of 6-18 months as per
norms of the banks.
 LOAN TO SHG
Eligibility: The group enterprise should have minimum 5 members with
a minimum of 70% members from urban poor families. More than one
person from the same family should not be included in the group.
Age: All members of the group enterprise should have attained an age
of 18 years at the time of applying for loan.
Project Cost: The maximum unit Project Cost for a group enterprise is
Rs. 10 lakh.
Margin: No margin money on loan up to Rs. 50,000. Above Rs. 50,000
margin money will be 5 to 10% of the Project Cost.
Type of Loan: Loan can be extended either as a single loan to the
group functioning as one borrowing unit or each member of the group
can be provided individual loans up to 2 lakhs and an overall cap of 10
lakhs based on mutual trust and collateral substitute among the group.
 NULM LOAN TO SHG
Type of Loan Facility: Banks may extend finance to
groups for capital expenditure in the form of Term
Loan and for Working Capital, through Cash Credit
Facility. Banks may also extend Composite Loans for
Capital Expenditure and Working Capital, depending
upon Group’s requirement.
Collateral security and guarantee on Bank Loan:
No collateral security and guarantee required. Only
assets created would be hypothecated/ mortgaged/
pledged to banks for advancing loans. The banks
may approach CGTMSE guarantee.
Repayment: 5 to 7 years after initial moratorium of 6-
18 months as decided by banks.
For any queries regarding
DAY-NULM Scheme
you may visit:
https://nulm.gov.in/