Differential Rate of Interest

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DRI stands for Differential Rate of Interest.

  • DRI scheme was first launched in the year 1972 in India. The scheme will be implemented in all the commercial banks of India.
  • Under this scheme a few eligible people will get loan at concessional rates from commercial banks to fund their business or work.
  • With the help of this scheme the people who live under poverty line or economically weaker groups will get a chance to better off their economic status.
  • The main aim or objective of the scheme is to provide loan to the economically backward classes and people who live under the poverty line at a lower rate of interest.
  • The scheme has launched to provide financial assistance to these people for their betterment and for making them economically stable.
  • Reserve Bank of India on 10th April 2008 has notified that borrowers with annual family income of Rs.18000 in rural areas and Rs.24000 in urban areas will now be eligible to avail of the facility as against the earlier annual income criteria of Rs.6400 in rural areas and Rs.7200 in urban areas, fixed by the Government of India in 1986.
  • The loan must be repaid within 5 years of time. An additional 2 years can be provided to the beneficiaries.
  • It depends on the nature and economics of the business. In case of agricultural loan NABARD guidelines should be followed.
Scheme DRI
Launched 1972
Beneficiary SC/ST/BPL, economically weaker group
Rate of interest 4% per annum
Banks Indian commercial banks
Amount of loan Rs. 6500/- (fixed) + 5000/- (SC/ST/PWD)

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