RBI hikes Differential Rate of Interest Scheme

New Delhi, Jun 16: RBI has announced a hike in the Differential Rate of Interest Scheme (DRI) being implemented by all Scheduled Commercial Banks from Rs 6,500 to Rs 15,000 and the limit of the housing loan from Rs 5,000 to Rs 20,000 per beneficiary. In his Budget Speech for 2007-08, the Finance Minister P Chidambaram had proposed to raise the limit of the loan under the DRI.

Government of India had formulated in March, 1972 a scheme for extending financial assistance at concessional rate of interest of 4 per cent to selected low income groups for productive endeavours by banks.

The scheme known as Differential Rate of Interest Scheme (DRI) is now being implemented by all Scheduled Commercial Banks.

UNI