BANKING AFFAIRS

Detailed explanation-1: -The loan scheme enables banks to lend to weaker section of the society at a concessional interest rate. The interest rate applicable is 4% per annum. Purpose of DRI scheme – Provides concessional rate of interest at 4% p.a. to the weaker communities in the society.

Detailed explanation-2: -Under the DRI Scheme, banks provide finance up to ₹15, 000/-at a concessional rate of interest of 4 per cent per annum to the weaker sections of the community for engaging in productive and gainful activities.

Detailed explanation-3: -DRI Scheme: The applicable interest rate is four percent on an annualised basis. In 1972, the DRI loans plan, which is also known as the DIR loan scheme, was established in order to provide selected low income groups with financial assistance.

Detailed explanation-4: -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.

Detailed explanation-5: -As per the RBI notification, people with annual income of Rs 18, 000 in rural areas and Rs 24, 000 in urban areas can avail of such loans under the scheme called Differential Interest Rate. Earlier, only those with annual income of Rs 6, 400 in rural areas and Rs 7, 200 in urban regions could get these loans.