International Journal of Management, IT and Engineering
Year : 2019, Volume : 9, Issue : 1
First page : ( 266) Last page : ( 279)
Online ISSN : 2249-0558.

Growth of microfinance in India below SHG-bank linkage programme in India

Chaudhary Vijeta

Faculty of General Management, N. L. Dalmia Institute of Management Studies and Research

Online published on 24 October, 2019.

Abstract

The Indian Microfinance Sector has perceived an incredible evolution over the earlier few years. In India, microfinance is provided majorly through two models-the SHG-Bank Linkage Model (SHG-BLM) and Microfinance Institution (MFI)-Bank Linkage Model. The SHG-BLM established by NABARD is the best generally used model of micro finance in India. National Bank for Agriculture and Rural Development (NABARD) launched the initial phase of the SHG-BLP in February 1992, as per which Self Help Groups (SHGs) were associated to banks for both savings and credit distribution. Since 1992, the programme has grown manifold. Today, the SHG Bank Linkage Programme (SHG-BLP) is the biggest microfinance programme in the world because of its size and the population it touches. In this background the paper attempts to study the progress made under the SHG-Bank Linkage Model in India during the last decade.

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Keywords

Micro Finance, Self-Help Groups, Bank Linkage Programme, NABARD, Development.

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