Dwcra Mahila Loan

Around 9 Lakh self-help women groups (Podhupu/Dwcra) in Andhra are going to get Zero percent interest for the loans they get, Recently Y.S. Jagan Mohan Reddy has announced this and gave 1400 crores to benefit 9 lakh, women. You can get this loan in any government bank or agriculture banks but in this article, we will discuss Andhra Bank.

Andra Bank is providing personal loans to SHG(Self Helping Groups). Despite vast expansion of the formal credit system encompassing spheres of social and mass banking, the dependence of the rural poor on moneylenders still continues in many areas, especially for meeting their emergent needs. Under these circumstances, a non-formal agency for credit supply to the poor, in the form of Self Help Groups, emerged as a promising partner to the formal credit system. SHGs are a  part of microcredit.

Andhra Bank Dwcra Loan – Eligibility, Interest rates, and Documents required to get the loan

The scheme envisages intending finance to  SHGs in community Managed Sustainable Living at villages in the state of  Andhra Pradesh. The main objectives are:

Secure them with financial, technical and moral strengths;

Enable availing of loans for productive purposes and repaying the same over a period of time, and in the process gain economic prosperity.

Inculcate saving and banking habits among the poor;

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Eligibility Criteria for Dwcra loan

Here are the major eligibility criteria for getting a loan for Dwcra loan

The SHG members should preferably have Common backgrounds and interests.

The group should have successfully undertaken savings and credit operations from its own resources.

The group is maintaining proper accounts/records.

The group should have been in active existence for at least a period of six months.

Democratic working of the group wherein all members feel that ‘they have a say should be evident.

Government employees aren’t eligible. 

Interest rates and fees for Dwcra Loans

The interest rates are very low for the Dwcra groups compared to any other people and recently Y.S.Jagan has announced there would be a complete waiver for the interest that to be paid by the groups.

Interest rates vary from 7% to up to 13%

Processing fee of 1%.

Documents required for Dwcra Loans

These are the common documents required to get the loan

Aadhar card

PAN card

Income proof 

Income certificate

Dwcra loans Features

The initial loan amount will be 50,000 for the group. 

In the second Installment, the Loan amount can be up to 1,00,000 or 1,50,000 after successfully paying the first installment.

Interest is paid by the government (Announced by Y.S. Jagan Mohan Reddy )

The duration of the loan can be 36 months to up to 60 months.

Cash credit limit in the ratio of 1:4, of the projected savings for 5 years will arrive/Drawing power will be fixed on a yearly basis.

To mitigate the hardship faced by SHGs with regard to Documentation, a cash Credit limit will be sanctioned for a period of 5 years basing on the Group’s projected savings.

To check the official website of Andhra bank

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