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After extensive trial and research the pilot programme was launched Twenty Five years
ago in 1992. The Self Help Group - Bank Linkage Programme (SHG-BLP) was an
innovation harnessing the synergy of flexibility of informal system with the strength and
affordability of formal system. Three radical innovations were introduced through the
RBI/NABARD guidelines on SHG-BLP:
Acceptance of informal groups as clients of banks – both deposit
and credit linkage
Introduction of collateral free lending, and
Permission to lend to group without specification of purpose/
activity/project
This savings led and door step credit delivery mechanism based on social collateral
started making immediate inroads backed by an enabling policy environment and
support from some national level institutions and multilateral agencies.
NABARD’s experiment in SHG-BLP established the credibility of groups as a bankable
proposition and rural people capable of financial discipline. It created a new set of clientele
with untapped appetite leading to several NGOs acting as financial intermediaries
for on-lending to groups buoyed by the success of SHG-BLP. A new breed of micro
lenders was born, the Micro Finance Institutions. As per MFIN, as on 31.03.2017, the
Microfinance industry has a total loan portfolio of
R
106,916 crore.
As we celebrate the Silver-Jubilee year of the movement, it is heartening to share visible
improvements in all aspects of the movement as compared to last year. During 2016-17,
despite the impact of demonetisation on credit disbursement and repayments, combined
efforts and initiatives of NABARD, banks, SHPIs, NRLM and Government agencies
have given great boost to the SHG-BLP movement.
There was a net addition of 6.73 lakh SHGs during the year increasing the number
of SHGs having savings linkage to 85.76 lakh as on 31 March 2017. The savings
outstanding of SHGs with banks as on 31 March 2017 has reached an all-time high
of
R
16114.22 crore. During the year, banks have disbursed loan of
R
38781.16 crore,
recording 4% increase over the last year despite the impact of demonetisation which
slowed down loan disbursement post October 2017. The total bank loan outstanding
to SHGs also increased by 7.81% and stood at
R
61581.30 crore against
R
57,119 crore
as on 31 March 2016. The gross NPA of bank loans to SHGs marginally increased
by about 5 basis points from 6.45% as on 31 March 2016 to 6.50% as on 31 March
2017. This was achieved in a year when there was overall deterioration in quality of
assets and mounting NPAs in the banking sector.
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