ZENITH International Journal of Business Economics & Management Research
Year : 2021, Volume : 11, Issue : 4
First page : ( 21) Last page : ( 35)
Online ISSN : 2249-8826.

An overview on trend of NPA on outstanding loans towards SHGs

Das Mithun

Assistant Professor, Department of Commerce, Bagnan College, Howrah, West Bengal, India

Online published on 30 May, 2021.

Abstract

Self-Help Groups (SHGs) play a very crucial role in generation of employment, eradication of poverty, inclusive growth and empowerment of women. Self-Help Group Bank Linkage Programme (SHG-BLP) is a landmark model initiated by NABARD in 1992 and has been emerged as the largest and most successful microfinance programme in the world. All banking agencies have been actively participated and taken useful initiatives to make this a successful one and thousands of poor households of the remote rural areas have been benefitted from it. The present paper aims to observe the trend of loan disbursement by different banking agencies to SHGs, the amount of outstanding loan, the volume as well as the percentage of NPA on outstanding loan towards different banking agencies by SHGs in each region of our country during recent past. It is done on the basis of secondary data only. The study reveals that the percentage of NPA on outstanding loan is lowest in Southern Region towards all banking agencies and it has been declined considerably during recent past, but in case of North-Eastern Region and Central region, it is very high and has been increased sharply during the same period which is not a good advertisement for the overall microfinance programme.

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Keywords

Banking agencies, Microfinance, NPA, SHG-BLP, SHGs..

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