Question
What is the concessional rate of interest applicable
under the Differential Rate of Interest (DRI) Scheme?Solution
• The Differential Rate of Interest (DRI) Scheme was introduced to provide concessional credit to weaker sections of society, enabling them to undertake productive and gainful activities. • Under the scheme, banks can extend loans of up to ₹15,000 per borrower (₹20,000 in case of housing loans for SC/STs) at a concessional rate of 4% per annum. • This scheme aligns with the government’s objective of promoting financial inclusion and supporting marginalized communities through affordable credit access.
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