National Rural Livelihood Mission (NRLM) is a poverty alleviation project implemented by the Ministry of Rural Development, Government of India. This scheme is focused on promoting self-employment and the organization of the rural poor. The basic idea behind this program is to organize the poor into SHG (Self Help Groups) groups and make them capable of self-employment. In 1999 after restructuring Integrated Rural Development Programme(IRDP), Ministry of Rural Development (MoRD) launched Swarnajayanti Grameen Swarojgar Yojana (SGSY) to focus on promoting self-employment among the rural poor. SGSY is now remodeled to form NRLM thereby plugging the shortfalls of the SGSY program. This PPT helps you to know about NRLM briefly.

1. National Rural Livelihood
Mission(NRLM): An Overview
Presented by-

2. What is NRLM
•It is a flagship program of GoI under the MoRD.
•It was launched in June, 2011.
•It was the restructured version of SGSY

3. Progression
3
Foundation
• Social mobilization, institution
building, capacity building,
community funds, bank linkages,
community cadres, CRP generation
Livelihoods
• Agriculture, livestock, N.T.F.P , risk /
coping management , micro
enterprises , Business
Development services,..
Convergence
• PRI Convergence, gender, social
development (Health, nutrition,
sanitation, shelter, education etc.)

4. How is it different from SGSY?
Issue SGSY NRLM
Target
Groups
Women, Men & Mixed
SHGs
Only Women SHGs
RF Linked with CC Directly credited to SB A/c, not Linked with CC
Capital
Subsidy
Linked with TL (Project
Loan)
No provision of Capital Subsidy
Nature of
Bank Credit
• After 1st Grading:
RF-linked CC
• After 2nd Grading:
Subsidy-linked TL
• After Initial Grading: – CC (not linked with RF)
• After Subsequent Grading: – Enhancement of CC & or TL
(not linked with Subsidy)
Amount of
Bank Credit
Up to 4 times of Group
Corpus
Need-based, not linked with Group Corpus;
1st time credit limit - minimum Rs. 1,25,000
Repeat
Financing
No specific provision
Repeat financing must so that after 5-7 years every member
gets loan limit of Rs 1,00,000 minimum.
Interest
Subsidy
No provision
Provision is there for loan provided to women SHGs up to Rs.
3 lakh not linked with capital subsidy under SGSY
Support of
Community
Not specified
• Engagement of CSP – Bank Linkage / ” Bank Sakhi” at Bank
branches
• Community–Based Recovery Mechanism (CBRM)

5. Structure of NRLM (From Top to Bottom)
National
Level
• Empowered Committee(EC) under NRLPS
•Members: Jt. Secretary & Add. Secretary (Rural Livelihood) of MoRD leads as Mission Director &CEO of NRLPS
State Level
• State Mission Management Unit(SMMU) under SRLM [Autonomous
Body incorporated as Society / Trust / Company]
•Members: Headed by State Mission Director (SMD), Multidisciplinary thematic experts like Social inclusion,
Programme Manager, Livelihood etc.
District Level
• District Mission Management Unit (DMMU) [Linked with DRDA]
• Members: Headed by District Mission Manager (DMM) hired on contract basis or deputation from Govt.
, Thematic experts.
Block Level
• Block Mission Management Unit (BMMUs) with Project Facilitation
Team at cluster level i.e. the sub-block level (Mahasangha).
• Member of BMMU: Headed by Block Mission Manager (BMM) and consisting 3-5 spearhead teams.

6. Timeline of Implementation at Block Level
• NRLM intends to work in a block for a period of 10 years till Community Federation
take responsibility of implementation.
1-3
Years
•Spent on building the
organizations of poor by
mobilising them into SHGs,
Federations at village, cluster
and block level
3-6
Years
•Deepening the activities like health,
nutrition, interventions for PwD
•Under this time period 4-5 years are
targeted for funds flow into the
community institutions
6-10
Years
•Especially a maintenance and
withdrawal phase where the
community institution graduate to
self-reliance and self-sustainability.

7. Ways of Implementation at Block Level
Resource Blocks
•These blocks would be model blocks where all key strategies would be piloted. Only 5-6 % blocks of a state came under this fold.
•National Resource Organization(NRO) support the state in implementation in the resource block.
Intensive Blocks
•SRLMs are directly entered with their own staff at block level and take support of the internal resources from the resource blocks
•The protocols of implementation followed in the resource block would be adopted in these blocks as well.
Partnership Blocks
•SRLM takes up implementation in blocks where there is pre-existing significant mobilisation of poor women into SHG as partnership organization.
•NGOs have a significant presence in a block are identified as partner NGOs. These NGOs are expected to follow NRLMs implementing protocols
and processes in the blocks.
Non-Intensive Blocks
•The remaining blocks in a state are non-intensive blocks. NRLM strengthening existing SHGs in these blocks with some capacity building and
limited financial assistance. No new mobilisation done.
•Some SRLMs are adopted 2-3 villages in the non-intensive blocks to implement NRLM in full fledged manner. Over time these blocks are come into
intensive fold.

8. Institutional Architecture
LEVEL SHG INSTITUTIONS
MAHASANGHA
SANGHA/C.L.F
UPA SANGHA/V.O
SHG
BLOCK
GRAM
PANCHAYAT
WARD/SANSAD
HAMLET/VILLAGE
Members’ Profile : 35.5% SC,8% ST, 25.2% Minorities, 4.2% Widows,
 10-20 members from poor womenfolk
 Thrift & credit activities
 Monitoring group performance
 Micro Credit Planning(MCP)
 Household investment planning
 E.C-2 from each SHGs, 5 office
bearers
 Strengthening of SHGs
 Arrange line of credit of the SHGs
 Social Action
 Village Development
 Marketing & food security
 Support Activists/Sub-Committee:
3-5
 E.C- 2 from each V.O, 5 office
bearers.
 Support to V.Os
 Secure linkages with Govt.
departments, financial institutions
& markets
 Auditing of groups
 Micro Finance functions
 Monitoring & Evaluation of the whole functions

9. Self Help Group(SHG)
• 10-20 members from poor womenfolk (For hilly area the minimum number of
members are 5)
• The womenfolk are from the same locality.
• Member must be more than 18 years of age.
• SHG should have 3 office bearers i.e. I. President, II. Secretary & III. Accountant.
• Opening of Bank Account.
• Practice of Panchasutra i.e.
-#1. Regular Meetings (4 Meetings in a month)
-#2. Regular Savings (A fixed amount of money will save in SHG’s Bank A/C in every month)
-#3. Regular Inter-Lending/taking loans
-#4. Regular Repayment
-#5. Regular Maintain of Books (I. Handbook; II. Cash Book; III. Saving Book;
IV. Loan Book; V. Minutes/Resolution Book)

10. Upasangha/Village Organization (V.O)
• Each Sansad have at least one V.O.
• Each V.O have 3-25 SHGs (If there will have more than 25 SHGs in a Sansad
then an another V.O should be formed).
• Each member of each SHG should be the member of V.O.
• V.O meeting will conduct 2 times in a month.
• In V.O meeting 2 members from each SHG will attend the meeting. They will be
the representatives of that SHGs for the V.O.
• V.O have 5 office bearers i.e. President, Vice President, Secretary, Asst.
Secretary & Accountant.
• Each V.O have a Bank Account.
• As per norms, a V.O should have at least 3 and maximum 5 Sub-Committees i.e.
I. SHG Monitoring Sub-Committee, II. Livelihood Sub-Committee, III. Social
Action Sub-Committee, and another two will formed based on the problems in
the villages.

11. • Sub-Committee is the main base of a V.O.
• Each Sub-Committee should have at least 3-5 member.
• The membership of Sub-Committee is Voluntary Basis.
• The responsibilities of Sub-Committees is as follows:
-#1. SHG Monitoring Sub-Committee: V.O is responsible for
strengthening and arrange the line of credit to the SHGs of that
particular V.O.
-#2. Livelihood Sub-Committee: V.O is responsible for livelihood
development of the women of that particular V.O.
-#3. Social Action Sub-Committee: V.O is responsible for
development of that particular village and also responsible for taking
action against the social problems of that village.
Sub-Committee of Upasangha/V.O.

12. Funds of SHG
SHG
Member’s
Saving
Interest &
Other Income
Funds from
Federation
(RF/CIF)
Loans from
Bank
(CC/Term
Loan)

13. SHG Bank Linkage
• SHG Bank Linkage Programme was newly starts in 2014 as per the
guideline of NABARD & RBI.
• The introduction of Community Based Repayment Mechanism
(CBRM) and Community Service Provider-Bank Linkage (CSP-BL) is the
main two component of this SHG Bank Linkage Programme
• According to NABARD, the continuous activity of a SHG as per the
SHG Bank Linkage Programme should be:
Internal
Lending
Bank A/C
Opening
Revolving
Fund (RF)
Community
Investment
Fund (CIF)
Bank Credit
From 1st
Meeting
2 months
3-4 months
6-8 months
6-12 months

14. Funds from Federation
• Revolving Fund (RF):
- NRLM provides Revolving Fund (RF) for SHGs after 3-4 months of
formation.
- Every SHG get ₹ 10,000 - ₹ 15,000/- as RF.
- The SHGs will got the RF as per the assessment report after 3-4
months.
- This fund is given to the SHGs for continuing the internal lending
among the members of the SHGs.

15. • Community Investment Fund (CIF):
NRLM provides CIF to the Sangha(CLF) and Upasangha as a resource in
perpetuity to capitalize the institutions of the poor in three forms i.e.
-#I. Seed Capital: Provides to the Sangha(CLF) for onward lending to SHGs
via SHG Federation(V.O) at the village level against after assessment of the
SHG’s micro-investment/micro-credit plan. CIF equivalent to ₹ 60,000 – ₹
1,10,000 per SHGs, is provided as a capital in perpetuity to each Sangha(CLF).
-#II. Vulnerability Reduction Fund: Provides to the village level primary
federation of SHGs (V.O) as per need for meeting the special needs of the
vulnerable people on one hand and for addressing members’ different
vulnerabilities like food insecurity, malnutrition, health risks, high cost debts
and emergencies etc.
-#III. Livelihoods/Layering Fund: Provides to the SHGs/SHG
Federations(V.Os) as per need and other collectives to support the deficit, if
any, in the funding clear feasible and viable business plans.
Funds from Federation

16. • Bank Loan:
As per NRLM guideline the SHGs can get loan from the banks. The bank loans are of two types:
- Cash Credit (CC) Loan:
o Banks advised to sanction minimum loan of ₹ 5 Lakhs for a yearly period of 5 years to each eligible SHGs after assessment.
o The rate of interest for this loan varies bank to bank but for intensive blocks the rate of interest is fixed as per NRLM guideline i.e. 7%. But if a SHG
repay the loans between the said time period then the bank returns 3% of interest amount to the account of that SHG. In that case, the rate of
interest becomes 4%. This return of 3% interest rate given to that SHG is like a reward for timely repayment of loan.
o The loan have a yearly drawing power(DP). The drawing power may be enhanced annually based on the repayment performance of the SHG. The DP
may be calculated as follows:
-# DP for First Year: 6 times of the existing corpus or minimum of Rs 1 lakh
whichever is higher.
-# DP for Second Year: 8 times of the corpus at the time review/
enhancement or minimum of Rs 2 lakh, whichever is
higher.
-# DP for Third Year: Minimum of Rs 3 lakhs based on the Micro credit plan prepared by
SHG and appraised by the Federations /Support agency and the
previous credit History.
-# DP for Fourth Year & onwards: Minimum of Rs 5 lakhs based on the Micro credit plan prepared
by SHG and appraised by the Federations /Support agency and the
previous credit History.
Funds from Federation

17.  Example:
Fixation of Credit Limit
-No. of SHG members: 15;
-Periodicity of meetings and savings: Once a month;
-Monthly savings amount of each SHG member :Rs.100/-;
-Total monthly savings by the group : Rs.100 x 15 = Rs.1500/-;
-Projected savings of the group after 5yrs. :Rs.1500 x 60(month) = Rs.90,000/-
Therefore, CCL that can be sanctioned for 5yrs (8 times of saving at the end of 5 years):Rs.90, 000 x 8(times) = Rs.7, 20,000/-.
Fixation of Drawing Power [DP] assuming that the group saves regularly
-1st year: Savings = 1500 x 12 (month) = Rs 18000
DP for 1st year: 6 times of corpus or minimum Rs 1,00,000
-2ndyear: Savings till 24 months = 1500 x 24(month) = Rs 36,000
DP for 2nd year: Eight times of corpus or minimum Rs 2,00,000
-3rdyear: Savings till 36 months = 1500 x 36 (month) = Rs 54,000
DP for 3rd year: minimum Rs 3,00,000 and so on
Funds from Federation

18. -Term Loan:
o In case of Term Loan, banks are advised to sanction loan amount for the SHGs.
o The rate of interest for that type of loan fixes as per the banks rule.
o At a time one SHG can take both CC Loan and Term Loan as per the SHG’s credit
repayment history.
o Banks are advised to sanction loan amount in doses as mentioned below:
• First Dose: 6 times of the existing corpus or minimum of Rs 1 lakh whichever is higher.
• Second Dose: 8 times of the existing corpus or minimum of Rs 2 lakh, whichever is
higher.
• Third Dose: Minimum of Rs 3 lakhs based on the Micro credit plan prepared by the SHGs
and appraised by the Federations /Support agency and the previous credit History.
• Fourth Dose: Minimum of Rs 5 lakhs based on the Micro credit plan prepared by the
SHGs and appraised by the Federations /Support agency and the previous credit History.
o Banks should take necessary measures to ensure that eligible SHG are provided with
repeat loans.
Funds from Federation

19. Grading of SHGs
• Grading is undertaken primarily for assessing the institutional and
financial discipline of the SHGs.
• Grading enables external financial and other institutions to
understand the quality of SHGs.
• Grading also enables identification of the strengths and weaknesses
of SHGs and facilitates interventions for their improvement.
• The responsibility of grading SHGs should be eventually undertaken
by VOs. The VOs should regularly undertake review of the
performance of SHGs on the basis of their gradation. Grading of
member SHGs should become a part of the agenda of VO meeting

20. Grading Exercise
SHG Life Cycle Stage Purpose of Grading Grading Parameters Who will Grade
Before disbursal of RF (3-4
Months after formation of
SHG)
For judging readiness
/eligibility of SHG to
receive RF
Panchasutra • In case VO is formed and the SHG is a member of VO: V.O will Grade
the SHG
• In case VO is not formed, or SHG is not a member of VO: grading will
be done by an informal village level committee involving members
from other SHGs facilitated by CRP/ Community cadres
Before disbursal of CIF (6-9
Months after formation of
the SHG)
For judging readiness
/eligibility of SHG to
receive CIF
MCP prepared
Panchasutra
• In case VO is formed and the SHG is a member of VO: V.O will Grade
the SHG.
• In case VO is not formed, or SHG is not a member of VO: grading will
be done by block/ cluster level appraisal committee involving
members from other SHGs facilitated by CRP/ Community cadres.
Before credit linkage of SHG
(first linkage)
– (6 months after the
formation of SHG or before
submission of application for
credit linkage)
For judging readiness
/eligibility of SHG to
receive bank credit.
MCP prepared (not
mandatory till 2nd
linkage)
Panchasutra
• In case VO is formed and the SHG is a member of VO: VO will Grade
the SHG
• In case VO is not formed, or SHG is not a member of VO: grading
should be done by an informal village level committee involving
members from other SHGs facilitated by CRP/ Community cadres.
• Branch Official/ Authorized representative of banks may also be
involved for grading .
Before credit linkage of SHG
(subsequent linkages)
– (Within 2 Months of
repayment of previous loan
or before submission of
application for bank loan)
For judging readiness
/eligibility of SHG to
receive Bank Credit
MCP prepared
(Mandatory from 3rd
linkage onwards)
Panchasutra
• In case, VO is formed and the SHG is a member of VO: VO will grade
the SHG.
• In case VO is not formed, or SHG is not a member of VO: grading
should be undertaken by an informal village level committee involving
members from other SHGs facilitated by CRP/ Community cadres
• Branch Official/ Authorized representative of banks may also be
involved for grading.

21. SHG Grading Format for Fresh Linkage

22. SHG Grading Format for Repeat Linkage

23. Thank You