Ministry of Rural Development, Government of India has launched NRLM by restructuring and replacing existing SGSY scheme with effect from 1st April 2013. It is designed to be a highly intensive programme and focuses on intensive application of human and material resources in order to mobilize the poor into functionally effective community owned institution promote their financial inclusion and strengthen their livelihoods. The support from NRLM shall include all round capacity building of the SHGs ensuring that the group functions effectively in all issues concerning their members, financial management, providing them with initial fund support to address vulnerabilities and high cost indebtness. Within this broad spectrum, Government of Odisha has lunched the OLM scheme as a version of NRLM for the state of Odisha. OLM’s mandate is to reach out to all the poor families, link them to sustainable livelihoods opportunities and nurture them till they come out of poverty and enjoy a decent quality of life. OLM endeavours, through its dedicated sensitive support structures and organizations at various levels, to reach out to all the rural poor households, and take them out of poverty through building their capacities, financial muscle and access, and self-managed self-reliant institutions; through placement in jobs, and/or nurturing them into remunerative self-employment and enterprises. The institutions of the poor-SHGs, gradually take charge of supporting their members being in control of their livelihoods, lives and destiny. Under NRLM/OLM there is no provision of subsidy linked loan /credit facility from Bank. Rather the scheme is designed to provide Revolving Fund of Rs 10000/- to Rs 15000/- to the good groups that follows Panchasutra. It has provision to provide Community Investment Support fund (CIF) in intensive blocks through village/cluster level federation of SHGs. There is also proposal to introduce Interest Subvention for providing credit to SHGs at lower rate. The guidelines for Interest Subvention, if any, shall be communicated on receipt of modalities from government. So also under OLM there is provision for providing seed capital support directly to SHGs by the government agency to strengthen their corpus. So the lending under OLM by the Banks is to recognize the seed capital/revolving fund provided by government to the group as the corpus of group and to recalculate the volume of credit that is to be granted to the SHG on the basis of the total corpus including the seed capital. Accordingly, the limit to the group should be decided as per the guidelines advised in aforesaid paragraphs. However OLM programme emphasizes for need-based credit to the SHGs.

For further details visit nearest OGB Branch.