As per information compiled by National Bank for Agriculture and Rural Development (NABARD), as on 31st March 2017, 85.77 lakh Self Help Groups (SHGs) have saving deposits of over ₹ 16,114 crore with banks. It is estimated that these SHGs cover more than 10 crore rural households. As reported by NABARD approximately 70% of the total savings of the groups are used for internal lending of the groups and 30% deposited with the Banks i.e. more than double the amount deposited with banks are used for internal lending of groups.

During the last three years, ₹ 94934 crore has been disbursed as loans to Women SHGs at applicable interest rates. Women SHGs in 250 Category-I districts under Deendayal Antyodaya Yojana- National Rural Livelihoods Mission (DAY-NRLM) are provided loans at 7% interest per annum with interest incentive of 3% payable on prompt repayment reducing the effective interest to 4% per annum.

This was stated by Shri Santosh Kumar Gangwar, Minister of State for Finance in written reply to a question in Lok Sabha today.

Concessional lending to women self help groups reduces effective interest on prompt repayment and supports rural household coverage. NABARD reports that many rural Self Help Groups hold savings with banks but primarily use a substantial share of those savings for internal lending. Women SHGs have been provided supported loan disbursements and, in DAY NRLM priority areas, are eligible for concessional loans with an interest incentive for prompt repayment that reduces the effective interest rate, thereby linking reduced cost formal credit to repayment performance and expanding access to finance for rural households.