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“SHG
S
,
SAVING
FOR
THE
PRESENT
,
SECURING
THE
FUTURE
”
Microfinance and SDGs
The first goal, SDG 1, is to end poverty in all its forms explicitly has one of its targets (1.4) that seeks
to ensure that all will have equal rights to economic resources. The target also states that all should
have access to basic services, ownership and control over land, technology and financial services
including microfinance. The target 1.5 under SDG 1 seeks to build resilience of the poor and the
vulnerable and reduce their exposure. This presupposes the positive relation between microfinance
and the economic betterment. It also brings to fore the role of insurance and other risk management
strategies that can protect the poor from adverse situations that can rip off productive resources
and/or from loss of breadwinners.
Many studies such as by Puhazhendhi and Satyasai (2000)
8
andNCAER(2007)
9
on impact of SHG Bank
Linkage Programme revealed that SHGs were able to obtain higher doses of loans that enhanced
capital availability to households. This in turn enhanced investment in productive assets that led to
diversify and intensify income generating activities of SHG members. Improved savings and capital
formation helped members to improve self-financing capabilities and risk bearing ability. The studies
Almost in attaining all the SDGs microfinance institutions including SHGs can play a
major role in generating funds for development and can give community orientation to the
interventions. The pathway of microfinance to SDGs is two-fold. One is through financial
inclusion
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and the other is through social engineering.
