Self Help Group in India

The decade of 1990s, witnessed a rapid SHG movement. The setting-up of NABARD and the introduction of SHG-bank linkage programme by NABARD acted as a catalyst for the development of SHGs.

The SHG-Bank Linkage Programme is the key strategy for delivering financial services to the poor in a sustainable manner.

Challenges

• Several bankers have negative thinking about SHGs due to low and failure in repayment of loan on time.
• Lengthy process in the opening of savings bank account and credit linkages.
• Variations in interest rate of various banks.
• Chronic opinion of family members about SHGs.
• The old and out-dated social outlook to stop ....