The VISVAS scheme aims to provide interest subvention to Self Help Groups (SHGs) and individual beneficiaries from the Other Backward Classes (OBC) and Scheduled Castes (SC). Implemented by the Ministry of Social Justice and Empowerment, this scheme offers a lower rate of interest on loans availed from Public Sector Banks (PSBs), Regional Rural Banks (RRBs), and similar lending institutions. In December 2020, the scheme received a major boost when NBCFDC and NSFDC signed a Memorandum of Agreement with Central Bank of India and Punjab National Bank.
Benefits & Salient Features
- Loan Limits:
- For SHGs: Up to ₹4,00,000
- For Individuals: Up to ₹2,00,000
- Subvention Rate:
- Maximum interest subvention of 5% per annum
- Mode of Payment:
- Subvention amount is directly transferred into the operating account of the SHG or the individual beneficiary.
Eligibility Criteria
For Other Backward Classes (OBCs):
- Must be a member of a backward class as notified by the Central/State Government.
- Eligible if holding an OBC Antyodaya Anna Yojana (AAY) card, or if facing three or more deprivations as per SECC-2011 records (verified by the relevant BDO Office).
- Beneficiaries involved in agricultural activities and covered under the PM KISAN scheme are eligible.
- SHGs must be registered with NRLM/NULM/NABARD and have a credit history of more than two years.
For Scheduled Castes (SCs):
- SHGs must be recognized by NSFDC and registered with NRLM/NULM and NABARD.
- Must be from castes notified as SC in the respective State/Central lists.
- Must have a valid Annual Income Certificate issued by the State Government’s competent authority.
- Eligible if holding an AAY card or if facing three or more deprivations as per SECC-2011.
- Beneficiaries involved in agricultural activities and covered under the PM KISAN scheme are eligible.
Application Process
Offline Application:
- Visit SCA Office:
- Eligible applicants should visit the nearest State Channelizing Agency (SCA) office. You can find your nearest SCA office using this link.
- Fill the Prescribed Form:
- Complete the application form with necessary details, including the needs, choice of vocation, and any training requirements.
- Submit Documents:
- Submit the filled application form along with the required documents to the SCA office.
- After review, the SCA will sanction the loan.
Documents Required
- Proof of Identity: Aadhaar Card
- SHG Membership Proof: Document verifying membership in an SHG
- SHG Registration Proof: Registration certificate of the SHG with NRLM/NULM/NABARD
- Credit History: Proof of SHG’s credit history
- Ration Card
- Income Certificate: Issued by the competent State Government authority
- Caste Certificate
- Antyodaya Anna Yojana (AAY) Card: (if applicable)
- PM KISAN Beneficiary Proof: (if applicable)
- Photograph: Passport-sized photograph of the applicant
Frequently Asked Questions (FAQs)
- Are SHGs availing subsidy under any other scheme eligible?
(Refer to the official guidelines regarding exclusivity of benefits under multiple schemes.) - Are all SHGs eligible for interest subvention under VISVAS?
Eligibility is subject to meeting the prescribed criteria, including registration and credit history. - What are the key features under the VISVAS scheme?
The scheme provides interest subvention at a maximum rate of 5% per annum, with defined loan limits for SHGs and individuals. - What does VISVAS stand for?
Vanchit Ikai Samooh aur Vargon ko Aarthik Sahayata. - What is the maximum loan limit for SHGs?
₹4,00,000 per SHG. - What is the maximum loan limit for an individual?
₹2,00,000 per individual. - What is the maximum subvention amount?
The scheme offers an interest subvention at the rate of 5% per annum. - What is the mode of payment of the subvention?
The subvention is directly transferred into the operating account of the SHG or individual.