Growth and Impact of SHGs Bank Linkage Programme in India: An Analytical Study
Sathyanarayana1, Ravishankar P2
1Dept of Studies in Economics, Dr B R Ambedkar Post Graduation Centre, (Chamarajanagara Dist), University of Mysore
2Department of Studies in Law, Mysore University School of Justice (MUSJ), University of Mysore, Mysore-06
Online published on 27 January, 2016.
In India, microfinance scene is dominated by Self Help Group-Bank Linkage Programme (SBLP) as a cost effective mechanism for providing financial services to the ‗unreached poor‘ which has been successful not only in meeting financial needs of the rural poor but also strengthen collective self help capacities of the poor, leading to their empowerment. In this back ground the present paper highlighted on the progress and impact of SBLP programme in India. Further it looked into the region wise progress of SBLP and also examined the role of agencies in progress of SHGs. It is observed that the growth trends of SBLP like number of SHGs with outstanding loans, loans disbursed to SHGs, total bank loan outstanding to SHGs, number of SHGs with saving accounts with banks and total saving of SHGs with banks were increasing in nature. Further it is found that the spread and depth of SBLP is much higher in the Southern region as compared with other regions in the way of access to basic financial services, and then this pattern of banking penetration appears to be a formidable challenge in the way of faster and more inclusive growth.
Microfinance, SHGs-Bank Linking Programme, (SBLP), NABARD, Rural Development, Poverty.