DRI Scheme Bank Loan

The Differential Rate of Interest (DRI) Scheme is a special loan scheme introduced by the Reserve Bank of India (RBI) to provide financial assistance to weaker sections of society at highly subsidized interest rates. The scheme is aimed at alleviating poverty by helping economically disadvantaged individuals get access to low-cost credit for productive purposes.

DRI scheme provides bank loan at a concessional rate of interest of 4% per annum for productive / self employment ventures. SC/ST, minorities and physically handicapped persons are targeted under this scheme to boost financial inclusion.

DRI Scheme Bank Loan

Key Features of the DRI Scheme Bank Loan

  1. Objective:
    The primary aim of the DRI Scheme is to provide low-interest loans to the economically weaker sections of society to help them improve their living standards.

  2. Interest Rate:
    The loan is provided at a highly subsidized interest rate of 4% per annum.

  3. Loan Amount:
    The maximum loan amount under the scheme is ₹15,000 per beneficiary. In some cases, for housing purposes, the loan limit can go up to ₹20,000.

  4. Loan Purpose:
    Loans under the DRI scheme can be used for:

    • Starting small businesses
    • Purchasing tools and equipment for livelihood
    • Agricultural activities
    • Education loans for children
    • Housing loans for constructing or repairing houses
  5. Repayment Period:
    The repayment period is up to 5 years, depending on the type of loan and the borrower’s capacity.

Eligibility Criteria for DRI Scheme Loan

  • Weaker Sections of Society:
    The scheme is meant for individuals belonging to economically weaker sections, particularly those below the poverty line (BPL).

  • Annual Family Income:
    The family income should not exceed:

    • ₹18,000 per annum for rural areas
    • ₹24,000 per annum for urban areas
  • Land Holding:
    The applicant should not own more than 1 acre of irrigated land or 2.5 acres of unirrigated land.

  • SC/ST Beneficiaries:
    Priority is given to individuals from Scheduled Castes (SCs), Scheduled Tribes (STs), and Other Backward Classes (OBCs).

  • Women Beneficiaries:
    Special focus is given to women beneficiaries, particularly for self-employment projects.

How to Apply for a DRI Scheme Loan?

  • Visit Your Bank:
    Approach any scheduled commercial bank, including public sector banks like State Bank of India (SBI), Punjab National Bank (PNB), and Bank of Baroda, to apply for the loan.

  • Submit the Application Form:
    Collect the DRI Scheme loan application form from the bank and fill it out with the required details.

  • Provide Supporting Documents:
    You need to provide the following documents along with your application:

    • Identity Proof (Aadhar Card, Voter ID, etc.)
    • Address Proof
    • Income Certificate issued by the competent authority
    • Land Ownership Certificate (if applicable)
    • Bank Passbook
  • Loan Approval:
    The bank will verify your application and supporting documents. If approved, the loan will be disbursed at an interest rate of 4% per annum.

Which banks offer DRI Scheme loans?

All scheduled commercial banks, including public sector banks, offer DRI Scheme loans.

What is the maximum loan amount under the DRI Scheme?

The maximum loan amount is ₹15,000 for general purposes and ₹20,000 for housing purposes.

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