SHG Bank Linkage Programme

The SHG-Bank linkage programme was launched by NABARD (National Bank for Agricultural and Rural Development) in 1991 in India. A SHG (Self Help Group)is a small group of poor people comprising 10 to 15 members, specially women.They use to contribute a small but fixed amount to the group monthly which they give as loan to the members against low interest rate.These SHGs are linked with the commercial banks to provide more financial assistance to the members. The book depicts how this policy of connecting SHGs to the banks helps to transform the rural economy in a big way. The banks give loans to the group and not to any individual. The group will share the responsibility of giving loans to each member and also to recover the loan amount from the debtors.It is found in the study that this policy has able to bring tremendous economic and social empowerment to the women members of the groups. They are not only better off in economic front but also their position has improved in the social front. They not only able to take economic decisions but also start to influence the social decisions of their localities.The policy has been a thorough success in the rural areas of India.