SBI Collaborates with Rural Development Ministry for SHG Loans: A New Chapter in Rural Financing

State Bank of India (SBI), the largest public sector bank in India, has partnered with the Ministry of Rural Development (MoRD) to launch a new financial product called Svyam Siddha, exclusively for women entrepreneurs in rural self-help groups (SHGs). This initiative is expected to boost rural financing and empower women-led enterprises in the country.

Svyam Siddha: A Simplified Loan Product

Svyam Siddha is a loan product that offers up to Rs. 5 lakhs to SHG women entrepreneurs for their economic activities. The loan application process is simplified and does not require any quotations or detailed project reports (DPRs). The applicants only need to submit a simple loan application with KYC details at their local SBI branches. The MoRD will facilitate the loan application process and oversee the loan repayment through its dedicated field cadre.

A Training Toolkit for Financial Literacy

Along with the launch of Svyam Siddha, the MoRD and SBI also unveiled a training toolkit package to promote financial literacy and access to formal finance for SHG women entrepreneurs. The toolkit covers crucial topics like fundamentals of banking, concepts on financial statements, working capital calculation, etc. The key modules of the toolkit have been converted into animated videos for self-capacity building of entrepreneurs.

The toolkit was developed in collaboration with the International Finance Corporation (IFC) under the World Bank-funded National Rural Economic Transformation Project (NRETP). The aim of the toolkit is to enhance the capacities of State Rural Livelihoods Missions (SRLMs) to facilitate increased access to formal finance by SHG members for their economic enterprises.

A Milestone in Rural Development

The MoU signing event for Svyam Siddha and the training toolkit was attended 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 along with other officials from NMMU, The World Bank and the IFC.

The MoRD and SBI have expressed their commitment to empowering rural communities and advancing financial inclusion at the grassroots level. They hope that this initiative will enable two crore lakhpati didis from SHG women, as envisioned by Prime Minister Narendra Modi.