Bank Linkage Programme Research Articles

SELF-HELP GROUPS: A TRANSFORMATIVE FORCE FOR WOMEN’S SOCIAL STATUS

Women constitute around fifty percent of the total human resources in our economy. Yet women are the more poor and under privileged than men as they are subject to many socio-economic and cultural constraints. The situation is more severe in the rural and backward areas. Women development activities must be given importance to eradicate poverty, increase the economic growth and for better standard of living. Self Help Group (SHGs)-Bank Linkage Programme is emerging as a cost effective mechanism for providing financial services to the “Unreached Poor” which has been successful not only in meeting financial needs of the rural poor women but also strengthen collective self help capacities of the poor ,leading to their empowerment. Rapid progress in SHG formation has now turned into an empowerment movement among women across the country (Tiyas biswas, 2007). Investing in women brings about a multiplier effect. Stories of women who not only are better off economically as a result of access to financial services, but who are empowered as well. Simply getting cash into the hands of women (by way of working capital) can lead to increased self-esteem, control and empowerment by helping them achieve greater economic independence and security, which in turn gives them the chance to contribute financially to their households and communities because women “tend to keep nothing back for themselves they contribute decisively to the well-being of their families”(Susy Cheston and Lisa Kuhn, 2002).SHG by mobilizing women around thrift and credit activities have resulted in economic self reliance there by changing their social attitude and status in the family and society SHG has emerged as a key programming strategy for most of the women development activities. Key words: Bank Linkage Programme ,Empowerment, Financial Services, Self Help Group, Socio-Economic.

A Case Study on Micro Financial Institutions – Effective Tool for Alleviating Rural Poverty in India

Micro financial (MFI’s) are extremely important in helping the underprivileged and low-income people in a nation like India, where 70% of people reside in rural areas and 60% of people are employed in agriculture according to the data of World Bank. The case study aims to highlights significance of microfinance in developing nations like India, where a sizable portion of the populace lives in poverty and lacks access to regular banking services. The Self Help Groups (SHGs)-Bank Linkage Program and Microfinance Institutions (MFIs) are the two main techniques that define the microfinance sector in India. The Self Help Groups (SHGs)-Bank linkage initiative, which aims to give the unreached poor a cost-effective way to receive financial services, is the main player in microfinance in India. The purpose of this case study is to assess the current state and contribution of microfinance to India's growth by elevating the economic conditions of rural population. Keywords: MFI’s, SHGs (Self Help Groups), Poverty Alleviation.

Impact of Microfinance Loan Waiving Programme on the Microfinance Institutions in Assam

The present study was undertaken to analyse the impact of the recent microfinance loan waiving programme of the Assam Government on microfinance institutions (MFIs). It was found that although the loan waiving programme had no impact on the NABARD-sponsored self-help group bank linkage (SBL) programme, it harmed the MFIs. After the implementation of the programme, there was a continuous decline in the number of MFI branches in the state, as well as their client outreach and annual loan disbursement. Further, some of the borrowers stopped the repayment of monthly instalments of their loans taken from the MFIs with the expectation of such programmes in the future.

Promoting Women’s Empowerment in Rural Regions: A study of the Self-Help Group Bank Linkage Program in Jharkhand

Historically, many women in India have faced barriers in accessing formal banking services due to cultural norms, lack of awareness and geographical constraints which often limit their ability to engage with mainstream financial institutions. The SHG Bank Linkage Programme, a leading initiative in India, has become a significant tool for societal development specially for women in India. By bridging the gap between marginalized communities and the formal banking system, it is fostering positive change across various social, economic and individual spheres. The collective spirit and peer support within SHGs foster social responsibility and financial discipline, leading to stronger communities and better preparedness for emergencies. This program promotes micro entrepreneurship by facilitating micro credit, resulting in the generation of employment, heightened production and positive impact on the local economy. By supporting women-led SHGs, this programme promotes gender equality and unlock their economic potential, contributing to overall economic development. This research paper analyses the remarkable progress of women-led Self-Help Groups through the SHG Bank Linkage Programme in Jharkhand over five years. The paper specifically focuses on four key factors: Savings, Loan Disbursed, Loan Outstanding, and Non-Performing Assets (NPA). Through the examination of these indicators, the paper aims to present a comprehensive picture of the impact of the SHG Bank Linkage Programme on women's financial inclusion and economic empowerment. This research paper adopts a descriptive approach, relying solely on data collected from secondary sources. This research paper shows how SHG Bank Linkage programme promotes social inclusion and reduced societal discrimination against marginalized communities and women in Jharkhand

Women Empowerment through Self -Help Groups in India – A Comprehensive Literature Review

India is a developing country with high ratio of Rural Population and high Masculinity index. If we look into the History, it has been founded that Male have more authority and power compare to the Woman and this practice is still continue in some areas of the Country. Government is continuously focusing on the Development by promoting several schemes for it. SHG is the Scheme launched by National Rural Livelihood Mission which emphasise on the Development of Rural poor through the Empowerment of Women. In this Review Paper we have tried to study different results related to women Empowerment through Self-Help Group in India. Additionally, it has been tried to understand different definitions of SHG and its importance also. The Literature says that Self-help Group is a group which is working for betterment of its members in terms of Economic, Social, Educational and Political level. SHG bank Linkage Programme is important to include the rural and excluded people into the financial system. It can contribute to the total Savings of the country which ultimately increase the Lending rate and funds can be utilised for development purpose. So, the development of the country can be improved by reducing the unemployment and poverty in the Country.

Rawls’ difference principle, self-help group, financial inclusion and social cohesion—lore or actuality? Experience of Central Assam

Microfinance is an alternative banking service available to low-income individuals or organizations for whom no institutional financial services are available. A widely accepted approach to assisting disadvantaged and excluded communities, especially in remote rural areas, is microcredit. The purpose of microfinance is to promote financial equality and inclusion by acting as a substitute for traditional lending methods for the marginalized. In India, Self-Help Groups (SHGs)—Bank Linkage Program that led microfinance—gained maximum popularity. The National Bank for Agriculture and Rural Development architected this model. In this model, Grameen Banks are associated with SHGs. The model is familiar as the SHG-Bank Linkage Program (SBLP). A microfinance program’s theoretical foundation is the “Rawls’ Difference Principle” embedded in the “Theory of Justice.” The microcredit program, through the Self-Help Group-Bank Linkage Program (SBLP), gained maximum popularity in India. These SBLPs are registered with the “Deendayal Antyodaya Yojana—National Rural Livelihoods Mission (DAY-NRLM)” under the scheme Aajeevika. In harmony with “Rawls’ Difference Principle,” the ultimate goal of Aajeevika is social cohesion for all. The current study aims to assess the effectiveness of the SBLP-driven microfinance program in promoting financial inclusion. Furthermore, unlike earlier studies, the present study also considers whether or not involvement in SBLP increases social cohesion, which is a crucial component of the Difference Principle. The empirical research is conducted using novel data collected through a field survey of 335 participants and 490 non-participants from Nagaon, Morigaon, and Hojai districts of Central Assam. The “Propensity Score Matching” method facilitates the impact analysis of SBLP. The participation decision in the SBLP is positively influenced by the level of education. Empirical results also indicate that Hindus and low-caste women are interested in participating in SBLP. Contrarily, distance from the bank and operational land holdings are negatively influencing the participation decision. The empirical findings support higher financial inclusion through SBLP involvement but do not support greater social cohesion. Based on the empirical results, we suggest that more SBLPs be enrolled with DAY-NRLP under “Aajeevika.” Simultaneously, social cohesion may be achieved only by guaranteeing participation for every deserving individual, irrespective of religion, caste, and class.

Role of Microfinance and Self Help Groups in Rural Women Empowerment – A Study of Two Sub district under Mahisagar District, Gujarat

Being the most important program in the SHG movement in India, NABARD started the pilot phase of SHG Bank Linkage Program in February 1992. This was the first example of a viable SHG financed directly by a commercial bank. Informal saving and borrowing groups of the poor were recognized as bankable customers. Soon after the SHG-bank linkage was in place, RBI advised commercial banks to consider lending to SHGs as part of their rural credit operations. Linking SHGs with the financial sector was good for both sides. Because banks were able to enter the money lending market, borrowers were lower income families, household costs were lower, and repayment rates were higher. By joining SHGs they were able to expand their operations with more credit and they had productive surplus funds for more credit. (Reddy and Maneck, 2005). This research paper attempts to examine the impact of microfinance in the context of poverty alleviation and socio-economic empowerment of women. Help empower women through microfinance by supporting women's economic participation, thus promoting gender equality and improving household welfare. To study the role of microfinance and self-help groups (SHGs) in women empowerment, Santrampur and Virpur sub district of Mahisagar district have been selected, for the present study a total of 20 SHG organizations have been selected from these two sub district and Out of these 20 SHGs, 150 respondents have been selected for the research. has been selected to start the job. Here tabular analysis has been used to analyze the data collected from local survey reports.

A Study on Loan Delinquency of the Self Help Group-Bank Linkage Programme in Rural Rajasthan

Abstract Research background Providing the microfinance to rural women is the prime concern of the government at central and state level in which the best microfinance programme is the Self Help Group Bank Linkage Programme. However, the Delinquency rate of the SHGBLP loan is on the higher side. As, borrowers do not make their loan repayments on time. Purpose The purpose of this research is to examine which types of self-help groups make timely repayments of an old loan. Also, to find out the different aspects of the loan delinquency rate which affect them and to find out the impact of self-help group maturity on loan repayment. Research methodology For this a total of 300 members were selected from the Udaipur and Banswara district of Rajasthan. Further, Tobit Regression has been applied to find out the factors which affect the loan delinquency percentages in the Self Help Group Bank Linkage Programme. Results The results highlighted that the maturity of the SHG group affects their repayment performance as old SHGs are functioning well in terms of repayment. The reason for the high delinquency rate is that the members had no surplus Income to repay back because of the failure of Business, natural calamities and medical issues. The members who are repaying the loan back on time are giving from their agriculture and enterprise profits. Novelty A lot of research has been carried out on the Impact of SHGBLP on many other factors but there is no research that has been done to find out why the programme has high loan delinquencies after being the best together with the impactful microfinance programme.

Impact Study of Self-Help Group Bank Linkage Programme on Beneficiaries in Rural Rajasthan

The underprivileged poor while availing loans face two main issues. First, a deposit of collateral is essential for availing loans, and second, formal sources do not provide loans for activities other than income generation. To abbreviate this problem of poor people, microfinance is playing an imperative role through the self-help group bank linkage programme (SHGBLP). Therefore, the objective of this research paper is to examine the impact of SHGBLP on its participants at the household level in terms of income, savings, expenditure and asset creation. For this, 450 households belonging to the treatment and control groups were interviewed. Further, the average treatment model was applied to the treated model through propensity score matching and principal component analysis. The results highlighted that participation in SHGBLP significantly affects the income of the poor participants in comparison to the less poor and medium poor, programme participation also significantly affects the consumption expenditure of the participants in comparison to the non-participants. In spite of that, it also significantly affects the asset creation of the medium-poor participants in comparison to the poor and less-poor participants, while participation does not affect the saving patterns of the participants.

Financial inclusion also leads to social inclusion—myth or reality? Evidences from self-help groups led microfinance of Assam

Microfinance is globally trusted for corroborating the upliftment of the rural vulnerable poor sections. It is looked upon as a means of credit-based poverty alleviation through financial inclusion. India also witnesses the same. In India, the self-help group bank linkage programme (SHG–BLP) is architected by NABARD in 1992 as a pilot project. The programme was mainstreamed in 1996 to link unorganised with the formal financial sector. In Assam, microfinance services are made available through SHG–BLP registered under Deendayal Antyodaya Yojana–National Rural Livelihoods Mission. Central Assam is the epicentre of operative SHG–BLP. This backdrop motivates us to explore the contribution of SHG–BLP in financial and social inclusion of the marginalised rural people of central Assam. Two self-developed indices, viz., financial inclusion index and social exclusion index are constructed by applying Multiple Correspondence Analysis. The impact analysis is facilitated by the Propensity Score Matching method. The study concludes that the SHG–BLP is successful in ensuring financial inclusion and simultaneously also assists in reducing social exclusion among the stakeholders.

Self help groups, microfinance, financial inclusion and social exclusion: Insight from Assam

In order to link the unorganised with the formal financial sector in India, the National Bank for Agriculture and Rural Development (NABARD) introduced the Self-Help Group Bank Linkage Programme (SHG-BLP) as a trial initiative in 1992 and mainstreamed it in 1996. Microfinance services are available in Assam through SHG-BLPs registered with the Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM). In central Assam, there are the most active SHG-BLP units. In light of this, the present study aims to explore contribution of SHG-BLP in financial along with the social inclusion of the marginalised rural people of central Assam. The impact of SHG-BLP is facilitated by the application of the propensity score matching method. The empirical results show that the SHG-BLP considerably reduces social exclusion among participants relative to their non-participant counterparts and ensures financial inclusion too. Based on this empirical finding, the study recommends that the coverage of SHG registration under DAY-NRLM be expanded. Simultaneously, efforts must be made to expand the alternative model of SHGs, the MFI-Bank Linkage Model, for expanding SHG coverage.

STUDY ON OBSTACLES IN THE PATHWAY OF STARTING AND OPERATING MFIs ESPECIALLY SHGs IN INDIA

In India, most of them live in the countryside and are engaged in odd jobs. Due to the lack of employment in rural areas, people are migrating to metropolitan areas. Microcredit serves those who are often overlooked in society such as women and the disabled. Microcredit cannot exist without microfinance institutions. In India microfinance operates through two channels:1. SHG – Bank Linkage Programme (SBLP) 2. Micro Finance Institutions (MFIs). The aim of the present study is to find out the obstacles in the pathway of SHG members in starting, operating, and promoting their businesses. As such a study requires in-depth exploration of SHG member’s conditions, their experiences and the problems they face in operating their business so researcher adopt a qualitative methodology to address the research agenda. The researcher concludes that at the very initial stage SHG members get support from the government in terms of getting guidance about how SHG scheme works and how SHG scheme works but still they face problems due to strict social norms that do not allow them to work beyond the boundaries for their home. Also, psychological issues like lack of confidence, lack of communication skills possess problems in their way. At operational stage training related problems and chances of falling into debt due to frauds and high competition in the market are the biggest problems for them. But major comes at promotional stage and this stage is important because failure at this point will put members in huge losses. SHG members face trouble in selling what they have produce because as per today’s trend they are not able to market products like through online platforms.

SHGS: Organisational and operational efficiency

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.

National Bank for Agriculture and Rural Development and the Growth of Self-Help Groups in India

Achieving inclusive growth through micro finance will be a catalyst for accelerating the pace of economic growth with equity. NABARD has intensified its efforts for roping in new partners for promotion and bank linkage in regions where the growth of groups has not been commensurate with potential. Priority has been assigned to awareness building and for identification of NGOs and other partners in 13 priority states, which account for 70 per cent of rural poor in the country. The phenomenal growth rate of micro finance sector, especially the SHG bank linkage programme has posed number of issues and challenges which need immediate attention. There is a huge amount of regional variation in both credit deepening and credit widening, though a lot of measures are being implemented by NABARD through various agencies. This indicates that there is still a long way to go for the SHG movement and also for NABARD to attain the goal of socio-economic empowerment and also inclusive growth in the country.

A Study on Motivational Factors and Economic Activites of Shg’s in Andhra Pradesh, India

To Empower women and to alleviate poverty in the society SHGs are considered as an important strategy. The present study is exclusively about the empowerment through their entrepreneurial activities of women in East and west Godavari districts of Andhra Pradesh through the self-help groups is the objective of this paper. SHG’s play a very important role in improving the socio-economic conditions of women by developing savings and thrift habit, by providing them micro finance at the time of needs and also encouraging micro entrepreneurs. SHGs Bank Linkage Programme is one of the several alternative channels of financial inclusion which help extensively to strengthen the poor specially women folk. Through SHGs, women in rural areas are able to feel financial secured. They come forward by doing economic activities with self-employment like petty shops, tailoring, flower vending, embroidery work etc. The results of the analysis revealed that Economic activities like tailoring and selling of ready- made garments and sarees are mostly carried by women of SHG’s. SHGs have organized many programmes relating to awareness of health and hygiene issues, importance of education for their children, acts pertaining to the safety of women etc.

Self-help group–bank linkage programme

In the rural and urban areas Self-Help Group–Bank Linkage Programme (SHG–BLP) was introduced to provide banking services to poor people. The present study analyses the loan disbursement of SHG for the last two decades. The research used the time-series data of SHG. The data was acquired from a secondary source, and the investigation is descriptive and analytical (NABARD). The obtained data were subjected to trend analysis. In the study, it was observed that the number of SHGs with commercial and regional rural banks are increasing. In contrast, SHGs affiliated with cooperative banks are declining. The loan disbursement amount increases for SHGs related to commercial and regional rural banks while it declines for cooperative banks. The analysis revealed that the numbers of SHGs are growing in Madhya Pradesh, and the loan disbursement amount is also increasing significantly over the study period.

Inherent problems in SHG formation in rural Punjab

The interface between the banks and the rural women oriented Self Help Groups in Punjab has been to assist the women, the National Bank for Agriculture and Rural Development (NABARD) is helping promotes the SHG Bank Linkage Programme which has facilitated the as well formation saving linkage of around 50,000 and credit linkage of 31,300 SHGs in Punjab. Women members of self help groups are being deterred by a series of problems that create hurdles in their attainment of success. The concept of SHGs in Punjab for women empowerment needs to evolve much more. Hence, efforts are required by members to prepare them to take decisions indecently and inculcate exemplary and sustainable leadership traits that would enable them to face various hurdles in their quest for obtaining financial inclusion as well as socio-economic empowerment

Growth and Distribution of Microfinance in Rajasthan With Reference to Public and Private Banks: An Approach of FGLS Fixed Effect Methods

Microfinance institutions fuel the growth of SHG-BLP in India. The present study assessed the growth and distribution of microfinance in Rajasthan with reference to public and private banks. The endogeneity model with panel data, fixed effect and FGLS application was used to assess the credit linkage programme from 2008 to 2019. The model was intended to examine the attitude and directions of a bank-linkage programme through microfinance in Rajasthan. It aimed to examine whether growth was unidirectional to NPAs and loans outstanding in Rajasthan. The study concluded that both private and public banks significantly contributed to the growth and distribution of microfinance in Rajasthan. The model found a significant association between loan disbursed and loan outstanding, number of SHGs and the past loans and recommended policy implications for improving the performance of public and private banks towards the growth of SHG-BLP in Rajasthan.

A STUDY ON FARMER’S SATISFACTION TOWARDS KISAN CREDIT CARD SCHEME – A REFERENCE TO ERODE CITY

The major innovations in the field of rural credit delivery in the nineties are the Kisan Credit Card scheme and Bank Linkage Programme. As a pioneering credit delivery innovation,Kisan Credit Card scheme aims at provision of adequate and timely support from the banking system to the farmers for their cultivation needs including purchase of inputs in a flexible and cost effective manner. Thus Kisan Credit Card scheme aids the farmers to carry out their agricultural activities very smoothly and effectively. Hence in this context, it is important to study the farmers’ satisfaction and the benefits they derived while using Kisan Credit Cards. Keywords: Credit,Scheme, Cost.

Whether the Self-Help Group - Bank Linkage Programme is Sustainable? An Empirical Evidence from India

Whether the Self-Help Group - Bank Linkage Programme is Sustainable? An Empirical Evidence from India