• The SHG-Bank Linkage Programme is the flagship microFinance intervention of NABARD. The launching of Pilot phase of the programme in 1992 could be considered as a landmark development in the banking with the poor. The informal thrift and credit groups of poor came to be recognised as bank clients under the Pilot phase. The Pilot phase was followed by setting up of a Working Group on NGOs and SHGs by the Reserve Bank of India in 1994, which came out with wide ranging recommendations on internalisation of the SHG concept as a potential intervention tool in the area of banking with the poor. The Reserve Bank of India accepted most of the major recommendations and advised the banks to consider lending to the SHGs as part of their mainstream rural credit operations.
The guiding spirit behind NABARD’s microFinance initiatives has the following contours:
• Offers cost effective approaches to formal institutions for expanding outreach to the poor.
• Develop collateral substitutes.
• Focus on rural poor, especially women.
• Facilitate empowerment of the poor and
• Effectively pursue the macro-economic objectives of growth
Self Help Group (SHG) - Bank Linkage - Status as on 31 March 2009
Savings of SHGs with Banks
As on 31 March 2009, total 61,21,147 SHGs were having saving bank accounts with the banking sector with outstanding savings of Rs. 5,545.62 crore as against 50,09,794 SHGs having savings of Rs. 3785.39 crore as on 31 March 2008, thereby having growth rate of 22.2% and 46.5% respectively. Thus, more than 8.6 crore poor households were associated with banking agencies under SHG-Bank Linkage Program.
Bank loans disbursed to SHGs
During the year 2008-09, the banks financed 16,09,586 SHGs, including repeat loan to the existing SHGs, with bank loan of Rs. 12,253.51 crore as against 12,27,770 SHGs with bank loan of Rs. 8,849.26 crore during 2007-08 registering a growth rate of 31.1% (No. of SHGs) and 38.5% (Bank Loan disbursed).
Bank Loans Outstanding against SHGs
As on 31 March 2009, total number of 42,24,338 SHGs were having outstanding bank loans of Rs. 22,679.85 crore as against 36,25,941 SHGs with bank loans of Rs. 16999.90 crore as on 31 March 2008 with a growth rate of 16.5% (No. of SHGs) and 33.4% (Bank Loan outstanding with SHGs). |
