Self Help Group – Bank Linkage Programme

Source: NABARD
Based on the observations of various research studies and an action research project carried out by National Bank of Agriculture and Rural Development (NABARD), the model of Self Help Group-Bank Linkage Programme or ‘SHG-BLP’ was evolved as a cost effective mechanism for providing financial services to the unreached and underserved poor households.
The NGO sector has played a prominent role of working as a Self Help Group Promoting Institution (SHPI) by organizing, nurturing and enabling credit linkage of SHGs with banks. NABARD later co-opted many others as SHPIs including the rural financial institutions (RRBs, DCCBs, PACS, Farmers’ Clubs (FCs), SHG Federations, NGO-MFIs, Individual Rural Volunteers (IRVs) etc.
These stakeholders were encouraged to take up promotion of SHGs by way of promotional grant assistance from NABARD. This savings-led microfinance model has now become the largest coordinated financial inclusion programme in the world covering almost 101 million households in the country. With more than 86% of the groups being exclusively women groups, the programme has provided a much needed push to women empowerment in the country.

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