Book Description

Easy access to financial services by the poverty ridden people is a need of the hour for reduction of poverty and socio-economic equilibrium. The financial services such as credit, savings, insurance, remittance and payments are facilitated through self help-bank linkage to the poor and thus enabling the process of financial inclusion. The SBLP was started as a pilot project in 1989 by NABARD. The SBLP is a partnership between SHGs, Banks and NGOs. Microfinance sector has responded to these challenges admirably in the last 20 years. NABARD is proud to say that the Self Help Group- Bank linkage programme, which is the largest microfinance programme in the world, today touches 101 million households through 7.9 million SHGs with thrift & deposits of about Rs. 1,36,914 million, annual loan off take of Rs.3,72,869 million and loan outstanding of nearly Rs.5,71,192 million. Despite these milestones, large sections of the poor population still remain unreached. Despite these milestones, large sections of the poor population still remain unreached and even majority who are in the SHG fold face the issue of inadequate credit. Bridging the last mile gap and forging partnerships to meet the myriad needs of the poor and to ensure sustainable livelihoods to them are the biggest challenges being faced today. I exhort all stakeholders viz. the banks, the SHG Federations, the NGOs, the MFIs, the Government agencies to put their compassionate foot forward to bring together complementary resources to address complex development problems that no one agency can address alone. During the year, NABARD and NRLM collaborated SHG-BLP is a strong intervention in financial inclusion for the bottom of pyramid. A proven platform initially conceived for increasing the outreach of banking services amongst the poor it has since graduated to a programme for promotion of livelihoods and poverty alleviation. This book contains five chapters focusing on varied aspects of Self help bank linkage programme, role of NABARD and banks, in depth study of socio-economic impact of micro financing through SHGs and problems of SHGs. The book is outcome of the major research project sponsored by the University Grant Commission to the author. I am grateful to the authorities of the UGC, New Delhi. I am also thankful to the authorities of Dr. Babasaheb Ambedkar Marathwada University, Aurangabad (Maharashtra) for extending support and grant for publication of this book.