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Microfinance SHG-Bank Linkage programme
(SHG-BLP)
NABARD’S
SHG-Bank Linkage Programme (SHG-BLP) evolved out of an action research project with
Mysore Resettlement and Development Agency (MYRADA) during 1986-87. The aim was to inculcate
savings habit among the rural poor, especially the women, organised into groups and to link them to the
mainstream banking system. The programme grew rather fast to reach credit outstanding of
r
571 billion
with 4.7 million SHGs as on 31 March 2016. The CAGR of number of SHGs having bank credit outstanding
and the amount of bank loan outstanding to SHGs between 1999 and 2016 was 27.22 per cent and 43.44
per cent, respectively (Table 3). The credit per SHG grew at the rate of 12.78 per cent per annum.
Table 3.
PROGRESS OF CREDIT LINKAGE TO SHGs IN INDIA,
31 MARCH
Total (
r
billion)
Total (
r
billion)
Average per SHG
(
r
’000)
Average per SHG
(
r
’000)
Year
Bank Loan
Outstanding to SHGs
No. of SHGs
Credit linked
(’000)
(’000)
1993
2000
0.00
0.3
115
1.93
17
11
0.01
0.6
264
4.81
18
10
0.02
2.1
503
10.26
20
0.06
4.8
717
20.49
29
13
0.12
8.6
1079
39.04
36
14
0.24
14.3
17
0.57
33
17
11
1994
2001
1995
2002
1996
2003
1997
2004
CAGR (%) (1999 - 2016)
1998
1999
Year
Bank Loan
Outstanding to SHGs
No. of SHGs
Credit linked
68.99
1618
4354
363.40
83
43
113.98
2239
4451
393.75
88
51
123.67
2895
4197
429.28
102
170.00
3626
4468
515.46
115
47
226.80
4224
4673
27.22
43.44
12.78
571.19
122
54
280.38
4851
58
312.21
4787
65
43
2005
2012
2006
2013
2007
2014
2008
2015
2009
2016
2010
2011
Source: Progress of SHG-Bank Linkage in India, NABARD, various issues;
and Status of Microfinance in India, NABARD, various issues.
