Abstract
In India, micro finance is dominated by Self Help Groups (SHGs) – Bank Linkage Programme which is aimed at providing a cost effective mechanism for providing financial services to the “unreached poor”. Based on the philosophy of peer pressure and group savings as collateral substitute, the SHG programme has been successful not only in meeting peculiar needs of the rural poor, but also in strengthening collective self-help capacities of the poor at the local level, leading to their empowerment. In this paper an attempt is made to evaluate the organizational and operational efficiency of SHGs micro finance activities based on a case study.
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