What is SHG-bank linkage model?

Self Help Group – Bank Linkage Programme (SHG-BLP) Based on the observations of various research studies and an action research project carried out by NABARD, the model of ‘SHG-BLP’ has evolved as a cost-effective mechanism for providing financial services to the unreached and underserved poor households.

How many models of bank linkage Programme are there in India for SHG?

In India, two types of SBLP models have emerged over period of time • Type–I: Bank-SHG-Members: The bank itself acts as a self-help group promoting institution (SHPI). unreachable areas is through providing bulk financing to MFIs for onward lending to the SHGs, which is also recognized as priority sector lending.

How is SHG linked to bank?

Apart from providing access to credit, bank linkage enables SHGs to utilize other services such as remittances of Mission and other government funds such as interest subvention and insurance services. Bank linkage also promotes the financial literacy of the members and contributes to prudent utilization of funds.

Which of the following banks are part of SHG-bank linkage Programme in India?

Notes: Regional Rural Banks (RRBs), Cooperative banks and Commercial banks are all part of the famous SHG-Bank linkage programme for microfinance in India.

How many models are there in SHG bank linkage Programme?

Three distinct model can be observed in linkage programmes between banks and low-income groups. The most common linkage model in India is where the banks deal directly with individual SHGs.

Who first launched SHG bank linkage Programme?

Kiran Kumar Reddy, on Thursday launched Self Help Group (SHG) Bank Linkage Credit Plan for 2012-13, involving a planned loan amount of Rs 9,127.37 crore.

What are the different models of SHG?

Linkage Model. (General Model)

  • Modified Linkage Model. (e.g.- OBC Dehradun) Savings.
  • NGO Model. (e.g.-UPLDC, etc.) Savings &
  • Modified NGO Model. (e.g.- BASIX & SHARE (AP), SEWA (Gujrat), etc.)
  • Indirect NGO Model. (e.g.- BOB- SEWA, Lucknow)
  • IFAD Model. (e.g.-TN, UP, Maharashtra under IFAD Project)
  • SGSY Model. Savings & Credit.

    • How is SHG bank linkage Programme important for micro institutions?

    It also transfers the responsibility from bank staffs to borrowers, making lenders feel free from taking high risks. The most common group-lending model in India is “SHG (self-help group)-bank linkages” and it is primarily providing small loans from banks to groups of SHGs. Micro-saving is also its important target.

    How many SHGs are there in India?

    Currently, India has over 6.6 million SHGs with 72 million members, including those set up before the NRLM, according to government data. The NRLM aims to reach 70-80 million poor households by 2025, according to the government’s implementation plan.

    In which year did self help group linkage project launched by NABARD?

    the poor in rural hinterlands, through various products and delivery channels in a cost effective and sustainable manner. The department came into being in the year 1998 with mainstreaming of the microfinance innovation viz. SHG-Bank linkage programme to a nation-wide scale.

    How many members are there in self help group?

    Size of the SHG The ideal size of an SHG is 10 to 20 members. (Advantage: In a bigger group, members cannot actively participate. Also, legally it is required that an informal group should not be of more than 20 people.).