Deendayal Antyodaya Yojana-National Rural Livelihood Mission

Scheme Introduction: A Brief Overview

Rural women play an important role in supporting their families and contributing to the village economy. However, limited access to formal credit, financial resources, skill development and business opportunities can make it difficult for many rural households to improve their income. To address these challenges, the Government of India introduced the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM). The scheme focuses on reducing rural poverty by organising poor rural women into Self-Help Groups (SHGs) and helping them develop sustainable livelihood opportunities. Eligible SHGs can receive a Revolving Fund of ₹20,000 to ₹30,000, Community Investment Fund support of up to ₹2.50 lakh per SHG, and collateral-free bank loans of up to ₹20 lakh, subject to applicable guidelines. The mission also promotes agriculture, livestock rearing, small businesses, skill development and women's entrepreneurship to improve household income and financial independence.

Originally launched in June 2011 as the National Rural Livelihoods Mission (NRLM), the programme was renamed DAY-NRLM on 29 March 2016. It is implemented by the Department of Rural Development under the Ministry of Rural Development, Government of India, through State Rural Livelihoods Missions (SRLMs), district and block-level mission units, and community institutions. Its major objectives include strengthening women's Self-Help Groups, improving access to institutional credit, promoting sustainable livelihoods, supporting rural enterprises and ensuring that vulnerable households can access social security and government welfare programmes.

Under DAY-NRLM, rural women belonging to poor and vulnerable households are encouraged to join existing SHGs or participate in forming new groups. The mission gives special attention to Scheduled Castes, Scheduled Tribes, Particularly Vulnerable Tribal Groups (PVTGs), minorities, persons with disabilities and other disadvantaged communities. SHGs generally consist of 10 to 20 women, while certain special groups may have as few as five members. Eligible groups can receive revolving and community investment funds, access bank credit at concessional interest rates and receive training and guidance for income-generating activities. The programme also promotes women-led enterprises through initiatives such as the Start-up Village Entrepreneurship Programme (SVEP) and supports women farmers through the Mahila Kisan Sashaktikaran Pariyojana (MKSP).

Women who belong to eligible rural poor households can approach their local Self-Help Group, Gram Panchayat, Village Organisation or Block Mission Management Unit to join the programme. If an SHG is not available in their village, they can contact their respective State Rural Livelihoods Mission for assistance with group formation. After joining an SHG, members participate in regular meetings, savings and internal lending activities. Eligible groups can subsequently access Revolving Fund and Community Investment Fund support and apply for bank credit according to the applicable guidelines. The mission does not have one universal online application form for all its benefits.

For assistance with SHG formation, financial support, bank linkage, livelihood training or other programme-related matters, beneficiaries can contact their local Block Mission Management Unit (BMMU), District Mission Management Unit (DMMU) or State Rural Livelihoods Mission. They can also refer to the official Aajeevika portal and the National Rural Livelihoods Mission portal for programme-related information.

Scheme Benefits

Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM) helps rural women improve their livelihoods by bringing them together through Self-Help Groups (SHGs). The mission focuses on building financial independence, developing income-generating activities and creating better economic opportunities for rural households.

The major benefits of DAY-NRLM include:

• Improved access to finance: Women SHG members can develop regular saving habits, access formal banking services and obtain credit to meet household and business requirements.
• Support for rural livelihoods: The mission encourages women to take up agriculture, dairy farming, livestock rearing, fisheries, food processing, handicrafts and other suitable income-generating activities.
• Promotion of women's entrepreneurship: Through programmes such as the Start-up Village Entrepreneurship Programme (SVEP), eligible rural women receive support to establish and manage non-farm businesses.
• Support for women farmers: The Mahila Kisan Sashaktikaran Pariyojana (MKSP) promotes women's participation in agriculture and helps them adopt improved and sustainable farming practices.
• Skill development and training: Rural women and youth can access relevant skill development, entrepreneurship training and self-employment opportunities through associated programmes such as Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) and Rural Self Employment Training Institutes (RSETIs), subject to their respective eligibility conditions.
• Access to financial services: Community resource persons, including Bank Sakhis, help SHG members access banking services, savings accounts, credit facilities and information about insurance and pension schemes.
• Better market opportunities: Women-led SHGs can promote and sell their products through SARAS Aajeevika exhibitions, eSaras and other suitable marketing channels, including GeM and ONDC, subject to platform requirements.
• Women's leadership and participation: SHGs, Village Organisations (VOs) and Cluster Level Federations (CLFs) provide women with opportunities to participate in group decisions, manage finances and take leadership roles in their communities.
• Opportunity to become Lakhpati Didis: Through the Lakhpati Didi programme, eligible SHG women are encouraged to develop sustainable livelihood activities with the aim of achieving an annual household income of at least ₹1 lakh.

Overall, DAY-NRLM helps rural women move beyond traditional livelihood activities by improving their access to financial services, skills, business opportunities and markets. This enables them to contribute more effectively to their household income and long-term economic security.

Financial Assistance and Subsidy Details

DAY-NRLM provides financial support to eligible Self-Help Groups (SHGs) through community funds and bank-linked credit. These facilities help groups build their financial resources, provide loans to members and invest in suitable livelihood activities. The major forms of financial assistance are explained below.

1. Revolving Fund (RF)

• Eligible SHGs can receive a Revolving Fund ranging from ₹20,000 to ₹30,000.
• This fund strengthens the group's financial resources and helps members access loans through internal lending.
• It also supports better financial management and helps SHGs develop a track record for accessing bank credit.

2. Community Investment Fund (CIF)

• Eligible SHGs can receive Community Investment Fund support of up to ₹2.50 lakh per SHG.
• The fund is generally routed through Village Organisations (VOs) or Cluster Level Federations (CLFs).
• It can be used to provide loans to SHG members for approved livelihood activities, small businesses and other eligible financial requirements.
• The CIF is a community-level resource and is not automatically transferred as a cash grant to every SHG member.

3. Collateral-Free Bank Loans

DAY-NRLM promotes access to formal bank credit for eligible SHGs. Under the applicable RBI guidelines, the loan provisions include:

• SHGs can access bank loans of up to ₹20 lakh without providing collateral security, subject to applicable banking norms and eligibility conditions.
• For loans up to ₹10 lakh, banks should not insist on collateral security or margin.
• For loans above ₹10 lakh and up to ₹20 lakh, banks should not insist on collateral security. However, a margin of up to 10% may apply to the portion of the loan exceeding ₹10 lakh, as permitted under the bank's approved policy.
• The sanctioned loan amount depends on the SHG's credit requirements, financial record and the bank's assessment.

4. Interest Subvention on Bank Loans

DAY-NRLM provides interest subvention to eligible women SHGs to reduce the cost of borrowing. Under the applicable RBI guidelines for FY 2025–26:

• For loans up to ₹3 lakh, the applicable concessional lending rate was 7% per annum.
• For loans above ₹3 lakh and up to ₹5 lakh, the applicable lending rate was the lower of the bank's one-year MCLR, its external benchmark-based lending rate or 10% per annum.
• Interest subvention was subject to the loan account meeting the applicable standard account requirements.

The interest rates and subvention arrangements may change from one financial year to another. SHGs should confirm the applicable terms with their bank or State Rural Livelihoods Mission before taking a loan.

Livelihood Activities Supported Under DAY-NRLM

Deendayal Antyodaya Yojana – National Rural Livelihoods Mission supports rural women in developing sustainable sources of income through agriculture, allied activities, small businesses and skill-based work. The mission helps SHG members access financial assistance, training, technical guidance and market opportunities to improve their household income.

The major livelihood activities supported under the mission include:

1. Agriculture and Farming

• Crop cultivation and improved farming practices.
• Organic and natural farming methods.
• Kitchen gardening and vegetable cultivation.
• Seed production and other agricultural activities.
• Formation of women farmer groups and producer groups.

2. Dairy Farming and Animal Husbandry

• Milk production and dairy-related businesses.
• Goat rearing, poultry farming and sheep rearing.
• Livestock management and animal healthcare support.
• Production and sale of animal-based products.

3. Fisheries and Allied Activities

• Fish farming and aquaculture.
• Fish processing, preservation and marketing.
• Other suitable fisheries-related activities based on local resources.

4. Food Processing and Small Businesses

• Pickle, papad, spices and other food product manufacturing.
• Flour milling and local food processing.
• Preparation and packaging of traditional food products.
• Small retail shops and other rural micro-enterprises.

5. Handicrafts, Handloom and Traditional Work

• Tailoring, embroidery and garment making.
• Handloom weaving and textile-related activities.
• Handicraft production and traditional artwork.
• Making and selling locally produced goods.

6. Non-Farm Enterprises and Service Activities

• Beauty parlours and other personal services.
• Repair shops and local service businesses.
• Rural transport services under the Aajeevika Grameen Express Yojana (AGEY), where applicable.
• Other small enterprises based on local demand and business opportunities.

To strengthen these activities, DAY-NRLM also works through specialised livelihood programmes such as the Mahila Kisan Sashaktikaran Pariyojana (MKSP) for women farmers and the Start-up Village Entrepreneurship Programme (SVEP) for rural enterprises. The support available depends on the programme, location and eligibility of the SHG members.

Eligibility Requirements

Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM) primarily focuses on rural poor households, particularly women who need financial support and sustainable livelihood opportunities. Women who meet the programme's identification criteria can join an existing Self-Help Group (SHG) or participate in forming a new group. The main eligibility requirements are as follows:

• The applicant should belong to a rural poor household identified under the scheme's eligibility and targeting process.
• Eligible households may be identified through the Socio-Economic and Caste Census (SECC) 2011 deprivation criteria or the Participatory Identification of Poor (PIP) process.
• The PIP identification list must be vetted by the Gram Sabha and approved by the Gram Panchayat.
• Generally, at least one woman from each identified rural poor household is encouraged to join the SHG network.
• Special attention is given to Scheduled Castes (SCs), Scheduled Tribes (STs), minorities, persons with disabilities, Particularly Vulnerable Tribal Groups (PVTGs) and other disadvantaged communities.
• Women SHGs generally consist of 10 to 20 members. However, special groups formed in difficult areas, remote tribal regions or for persons with disabilities may have a minimum of 5 members.
• Up to 30% of an SHG's membership may come from households marginally above the poverty line, subject to the approval of the other group members.
• Self-Help Groups must follow the Panchasutras, which include regular meetings, regular savings, internal lending, timely repayment and maintaining updated financial records.
• For bank loan eligibility, an SHG must generally have been active for at least 6 months according to its books of accounts and must meet the applicable NABARD grading requirements.

Required Documents

Women who want to join a Self-Help Group (SHG) or access financial support under the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM) may need to provide some basic documents and information. The exact requirements depend on whether they are joining an SHG, applying for a bank loan or accessing other scheme benefits. Commonly required documents include:

• Aadhaar card or another valid identity proof.
• Address proof or residence details, wherever required.
• Recent passport-size photographs, if requested.
• Bank account details of the SHG and its authorised office bearers.
• SHG membership details and group records.
• SHG meeting, savings and internal lending records, where applicable.
• SHG resolution or authorisation for applying for financial assistance or a bank loan.
• Micro Credit Plan (MCP) or details of the proposed livelihood activity, where required.
• Additional documents requested by the concerned bank or State Rural Livelihoods Mission.

Steps to Apply

Joining the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM) starts with becoming a member of a local Self-Help Group (SHG). The programme follows a community-based approach, so women generally receive assistance through their village-level groups rather than applying individually for a direct cash benefit. Follow these steps to become part of the mission:

• Contact your local SHG or community worker: Speak with an existing Self-Help Group member, Community Resource Person (CRP) or Village Organisation in your village. They can explain how the programme works and help you join a group.
• Approach the Block Mission Management Unit: If you cannot find an SHG in your area, contact the Block Mission Management Unit (BMMU) of your State Rural Livelihoods Mission. The officials can guide you about SHG formation and beneficiary identification.
• Complete the household identification process: Your household's eligibility is checked through the programme's rural poverty identification process, including the Participatory Identification of Poor (PIP) process and applicable Gram Sabha validation.
• Join or form a Self-Help Group: Eligible rural women can join an existing group or participate in forming a new SHG. A regular SHG generally consists of 10 to 20 women who come together for savings, meetings and financial activities.
• Start regular group activities: After joining, participate in regular meetings, save money, maintain group records and take part in internal lending. These activities help the SHG build a strong financial record and become eligible for further assistance.
• Receive eligible Revolving Fund support: Once the SHG fulfils the applicable conditions, it can receive a Revolving Fund of ₹20,000 to ₹30,000 to strengthen its financial resources.
• Access Community Investment Fund support: Eligible SHGs can approach their Village Organisation (VO) or Cluster Level Federation (CLF) for Community Investment Fund assistance to support livelihood and income-generating activities.
• Apply for bank credit: Once the group meets the prescribed activity and grading requirements, it can approach a participating bank for a loan under DAY-NRLM. The SHG can use the loan to start or expand agriculture, livestock, small businesses and other eligible activities.
• Explore additional livelihood opportunities: Contact your Block or District Mission Management Unit to learn about entrepreneurship training, farm activities, skill development and marketing support available through the mission.

How Self-Help Groups (SHGs) Work Under DAY-NRLM

Self-Help Groups (SHGs) are the basic community institutions promoted under DAY-NRLM. They bring rural women together to save money regularly, access loans, support one another and develop income-generating activities. These groups are gradually connected with higher-level community organisations to improve their financial strength and livelihood opportunities.

Under DAY-NRLM, SHGs generally work through a three-tier community structure:

1. Self-Help Groups (SHGs)

• An SHG is generally formed by 10 to 20 members, mainly women from rural poor households.
• Members hold regular meetings and contribute savings according to the group's decisions.
• The collected savings are used for lending to members according to agreed group rules.
• Members maintain records of meetings, savings, loans and repayments.
• SHGs can also access revolving funds, community investment support and bank loans, subject to eligibility.

2. Village Organisations (VOs)

• Village Organisations are formed by bringing together several SHGs at the village, hamlet or Gram Panchayat level, depending on the local structure.
• They help SHGs manage their activities, access financial services and resolve common issues.
• VOs support livelihood planning, financial management and the implementation of community-level activities.
• They may also help eligible SHGs access and manage Community Investment Fund support.

3. Cluster Level Federations (CLFs)

• Cluster Level Federations are higher-level community institutions formed by bringing together Village Organisations or SHGs, depending on the structure adopted by the State Rural Livelihoods Mission.
• They provide support and guidance to member organisations.
• CLFs help coordinate livelihood activities, financial services, training and market linkages across several villages.
• They also play an important role in managing community funds and strengthening the long-term sustainability of SHG institutions.

Five Basic Principles of a Successful SHG (Panchasutras)

DAY-NRLM encourages SHGs to follow five basic practices, commonly known as the Panchasutras:

• Regular meetings among members.
• Regular savings by members.
• Regular internal lending within the group.
• Timely repayment of loans.
• Proper maintenance and updating of books of accounts.

These practices help SHGs build financial discipline, maintain transparency and develop a good credit history. They also strengthen the ability of members to manage their group activities independently.

Difference Between DAY-NRLM and DAY-NULM

DAY-NRLM and DAY-NULM are two different government missions that focus on improving the livelihoods of poor households. The main difference is their target population: DAY-NRLM focuses on rural livelihoods, while DAY-NULM was designed for urban livelihoods.

Relevant Links

• Department of Rural Development, Ministry of Rural Development
• Details of Deendayal Antyodaya Yojana – National Rural Livelihoods Mission
• LokOS – DAY-NRLM Digital Platform

Contact Information

Department of Rural Development
Ministry of Rural Development, Government of India

• Phone: 011-23461708
• Email: No dedicated public DAY-NRLM email address could be verified. For official correspondence, refer to the Department of Rural Development Directory.
• Address: 7th Floor, NDCC Building-II, Jai Singh Road, New Delhi – 110001, India.

LokOS – DAY-NRLM Digital Platform

• Contact Number +91-0120-5202521
• Send Query
• Contact Us Page

For state-level assistance related to SHG formation, membership, financial support and livelihood activities, beneficiaries can also contact their respective State Rural Livelihoods Mission (SRLM) or Block Mission Management Unit (BMMU).