What changed
The loan limit under the DRI scheme was raised from Rs 6,500 to Rs 15,000 per beneficiary, and the housing loan limit was increased from Rs 5,000 to Rs 20,000. These changes follow the Finance Minister's 2007-08 Budget announcement. All other terms and conditions of the scheme remain the same.
What it means for you
Banks must immediately update their systems and branch instructions to reflect the higher loan caps for DRI advances. The increased limits allow banks to serve more low-income borrowers with larger concessional loans, potentially improving outreach and compliance with the 1% lending target.
What you must do
- Issue immediate instructions to all controlling offices and branches to implement the revised DRI loan limits of Rs 15,000 (general) and Rs 20,000 (housing).
- Ensure that the 1% of previous year's total advances target for DRI lending is maintained as per existing guidelines.
- Update internal manuals, loan application forms, and staff training materials to reflect the new limits.
- Monitor branch-level compliance and report any deviations to the controlling office.
Who it affects
All scheduled commercial banks (excluding RRBs), Branch managers and loan officers handling DRI advances, Low-income beneficiaries eligible under the DRI scheme
What are the new loan limits under the DRI scheme?
The general loan limit has been raised from Rs 6,500 to Rs 15,000 per beneficiary, and the housing loan limit has been increased from Rs 5,000 to Rs 20,000 per beneficiary.
Do the other terms and conditions of the DRI scheme change?
No, all other terms and conditions of the scheme remain unchanged. Only the loan limits have been revised as per the Finance Minister's Budget announcement.
What is the lending target for banks under the DRI scheme?
Banks must continue to lend 1% of their previous year's total advances under the DRI scheme, as specified in earlier circulars.