SHG-Bank Linkage Programme Research Articles

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.

A Study on Impact of Demography on women Empowerment after joining self-help group

The economic and social development of society depends upon human development. Women constitute approximately half of the Indian population. Their role is indispensable in the process of socio-economic development of a nation. Women's empowerment allows women to take an independent decision, redefine gender roles, control over money, and pursue their dreams. Empowering women in social, family, political, psychological and educational aspects has become necessary to become a self-sustainable society. SHGs act as a catalyst of change in empowering women. Empowering women changes the underlying inequalities in power and resources and increases self-esteem, self-confidence, and independent decision making. The objective of this paper is to empirically understand the effect of the SHG-Bank linkage program on women's empowerment. Information is collected using a questionnaire form Yamuna Nagar, Haryana. The data obtained was analyzed using SPSS 16. Results suggested that there is a significant impact of age, education, marital status and number of family members on social, family, political, psychological and educational indicators leading to women's empowerment. Research failed to establish the impact of this type of family on women empowerment after joining SHG's linked to BLP. It is suggested to focus on age, education, marital status and number of family members as they play an important role in empowering women.

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.

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.

Self-Help Groups and Economic Development of Women in India through Microcredit Scheme

The concept of SHG significantly impacts the economic status of the poor people of India. These groups are the associations that are constituted voluntarily to achieve collective benefits. This group may be registered or unregistered. Members who have engaged in SHGs agreed to save a small amount of money regularly for the contribution of the common fund. An analytical research method has been applied to carry out this research work. The present study is purely based on the data collected from various published sources such as articles, NABARD annual reports, and RBI bulletins. The collected data has been analyzed and interpreted to reveal the significance of SHGs for financial inclusion through the microfinance system. It brings a massive opportunity for income generation activities. The study also found that a good number of SHGs has increased in recent years. The savings amount has also consistently increased from 2018-19 to 2020-2021. The data also proves the significance of the SHG-bank linkage program as a boon for the poor people in rural India to identify and enhance their potential.

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

Inclusive Growth through SHG-An Expost Study

SHGs is for accelerating the economic growth with equity by way of access to credit requirement to vulnerable groups. The NABARD implemented such programmes favouring SHGs in the country. SHGBLP requires coordinated efforts by all stake-holders to tackle the issues of heavy concentration, stagnation in growth, multiple membership, lower bank linkage both in number and quantum, and also for the rising of non-performing assets in the country. The cooperative institutions like District Cooperative Central Banks and Primary Agricultural Cooperative Credit Societies have a long history and also helped the beneficiaries tremendously in our country. It is noted that the SHGs has grown over the years in various parts of the country but 26 per cent of them have been brought under the SHG-Bank Linkage Programme. In addition, a huge amount of regional variation in both credit deepening and credit widening has been observed in the country.

Significance of the Microcredit Delivery Models for Livelihood Upgradation: A Comparison Between SHGs–Bank Linkage Model and Micro Finance Institutions Model with Case Studies from Rural West Bengal, India

Microfinance is seen as a useful way to alleviate the financial problem of the rural poor. In India, SHG bank linkage (SBL) programme and the Microfinance institution (MFI) are two main sources of microcredit. This article aims to compare the importance of the credit delivery processes under these two types of microfinancing approaches in ordering the livelihood of the recipients. For this purpose, a set of indicators are chosen from different domains of livelihood. Information is collected through a primary survey in some selective villages of West Bengal, India and is analysed using different statistical techniques. It is found that the MFI recipients experience better impact than SBL recipients though the SBL’s recipients have greater improvement in cases of savings habit, mobility, and access to the health. Besides, the number of loans received and the mode of utilisation of the credit are observed as the most significant factors influencing the livelihood outcome in both cases.

Progress of Self Help Group-Bank Linkage Programme in India

In this paper an attempt has been made to analyse the progress of SHG-Bank linkage programme in India during the period between 2007-2008 and 2019-2020. The progress of SHG-Bank linkage programme has been analyzed in terms growth of savings of SHGs with banks and growth of bank loans disbursed to SHGs. For this purpose the data required for the study were collected from the official publication of National Bank for Agricultural and Rural Development (NABARD), different published reports, journals and existing available literature. This study employed simple statistical tools such as percentage analysis and averages to analyze the data. The result of the study shows that there is significant raise in the amount of savings of SHGs with banking sector and amount of loans disbursed to SHGs, During this study period. However the agency-wise analyses of savings of SHGs and loans disbursed to SHGs show that the Commercial banks lead in getting savings of SHGs and loans disbursed to them followed by Regional Rural Banks and Co-operative banks. Not with standing the remarkable progress, geographically there has been skewed development of SHG-Bank linkage programme in India. There is wide regional disparity in the spread of SHGs, savings of SHGs with banks and loans disbursed to SHGs under this programme. The outreach of this programme is spectacular in Southern region while North, West and Eastern regions are lagging behind. In view of the large outreach, predominant position and the possible benefits to the poor, it is very important to see the benefits of this programme to reach across all sections of the society and regions. So far the SHG movement is India is mostly South-Centric and it is yet to take off the real sense in other regions of India.

Micro Financial Perspectives of Self-Help Groups from Disadvantaged Districts of Maharashtra

The present study was planned to determine the micro-financial perspectives of SHGs from disadvantaged districts in Maharashtra. A total of 40 SHGs from two disadvantaged districts were selected using a disproportionate random sampling method. The data were collected from SHGs by personal interview method. The study revealed that SHG members strictly adhered to the principle of Saving First and Credit Later. The cumulative savings of SHGs were `83,785. The sampled SHGs had mobilized their savings in the form of an internal loan. The need-based lending approach was used which ensured a cent percent loan recovery. The average loan borrowed by SHGs from banks was fairly high due to an affordable interest rate of 4.0 percent per annum charged by banks on external loans. However, SHGs had charged 1.00 to 2.00 percent monthly interest, it accounted annually 12 to 24 percent interest on the external loan while lending. This shortfall in lending microfinance may be overcome by organizing the sensitization program for SHGs. It was concluded that sampled SHGs adopted good microfinance management practices in disadvantaged districts of Maharashtra. Further, the SHG Bank Linkage programme was an effective intervention in economic upliftment and financial inclusion for the bottom of the pyramid. This proven platform initially conceived for increasing the outreach of banking services among the poor which led to promotion of livelihoods and poverty alleviation. Further, the potential SHGs may be encouraged to graduate as members of farmers producers’ organisations/companies.

Impact of Credit Accessibility on the Earnings of Self-employed Businesses in India

The study assesses the impact of credit accessibility on the earnings of self-employed small businesses in India. Using unincorporated non-agricultural enterprises survey data provided by National Survey Sample Organisation (NSSO) on the Indian economy for the year 2015-16, the paper shows that access to credit augments earnings of self-employed businesses. The paper also separately shows the impact of credit availed from formal and informal lending agencies on self-employment earnings. Interestingly, we observe that both these lending agencies have a positive impact, even though the terms and conditions are not favourable in the informal market. Based on our findings we suggest for creation of informal-formal credit linkage programme akin to that of SHG bank linkage programme in which enterprises that do not possess accessibility to formal sources due to absence of collateral can also get formal credits through informal lenders at favourable terms and conditions.

The impact of microfinance on socio economic upliftment of economically weaker section of Ranchi District

Over the last two decades microfinance has emerged as a powerful tool to combat poverty. A number of past studies have reiterated the fact that the poor are credit worthy. They have exceptional talent, integrity and are assiduous in any livelihood activities which they undertake. However the major constraint faced by them is financial awareness, financial literacy and provision of hassle free credit. Provision of credit through the SHG bank linkage programme aims to address these issues. Jharkhand has a majority of tribal population and is one of the most backward states in the country. Population of Jharkhand has registered an increase of around 60 lakhs in ten years i.e. from 2001-20111 and with this trend of increase in population around another 300 lakhs will be added in next 50 years. Creation of white collared jobs to absorb such population would be challenging. Self-employment is the only way out to make the vulnerable people self-dependent, who otherwise resort to violence and terrorism in absence of employment. Most of the government credit programs have a ‘stillbirth’ and availing bank finance becomes a herculean task for the unbanked. The marginalized should be provided with avenues and opportunities to set up micro enterprises. While a considerable number of studies on microfinance have been done in other parts of the country, merely a few quantitative studies have been done in the state of Jharkhand. This also justifies the low impact of the programin this state compared to its southern counterparts. This paper aims to study the impact of microfinance on the socio economic upliftment of the poor in Ranchi district of Jharkhand state. It also aims to diagnose the problems and suggest suitable remedial actions to all stakeholders involved.

A Study Exploring the SHG-Bank Linkage Programme and Women Empowerment in the Southern Region of India

Microcredit is a great choice for rural women as it provides them the required economic and social skills to face challenging environments. The purpose of the paper was to review the self-help group-bank linkage programme (SBLP) in five southern states of India, namely Andhra Pradesh (undivided), Karnataka, Tamil Nadu, Kerala, and Puducherry for a period of 2012–2017. Commercial banks - public, private, regional rural banks, and cooperative banks - are involved in the linkage programme because of their mandatory disclosure with the SBLP. The self-help groups' (SHGs) loans disbursement in the selected states was found to be high among the cooperative banks. It was observed through the analysis that the cooperative banks played an important role in Karnataka and Tamil Nadu. The private sector banks also played a significant role in the linkage programme, if the state strongly intervenes. The research study led to the inference that though the number of women SHGs was increasing every year, the SHGs managed to save and repay the loans within the stipulated period. It was observed from the study that the savings - bank linkages varied across the states, and the linkages depended on various parameters.

Self help group model and credit linkage: A study with reference to State bank of Mysore

Financial inclusion, empowerment of women are part of a strategy to alleviate poverty and reach the millennium development goals(MDG). Since the 1990‘s the formal financial institutions in India have ventured into microfinance on a large scale by adopting the SHG-Bank linkage program model. The present paper attempts to analyze the SHG model and evaluate the performance of credit linkages of State Bank of Mysore, (now merged into State Bank of India since 2017.

SHG Bank Linkage Programme in India and Its Impact on Rural Saving: Literature Review

Individual saving and investment are important for the economy of a developing country. Investment is important for the capital formation and growth of economy. India is a rural based country where 80% of total population is living in rural area. Marginal propensity of saving (MPS) in rural household is very insignificant.SHG Bank linkage programme pioneered by NABARD in 1992 with 500 SHG has become a strong tool for improving the saving habit of rural people specially women. Since 1992 more than 80 lakhs of SHG are linked to various banks. The self help group of 10-15 women is motivated to save money periodically and encouraged to put their saving in some income generating activity or other kind of investment. Bank linkage programme is playing a pivotal role in rural saving and hence their investment. The present study has been carried out to review the literature on the impact of SHG Bank linkage programme on rural people’s saving and investment habit.

Does microfinance alleviate poverty and inequality? Studying self-help groups in Bodoland, Assam

ABSTRACTThis article aims to assess the impact of microfinance through a government-sponsored SHG–bank linkage programme (SBLP) of the National Bank for Agriculture and Rural Development (NABARD) in India, on poverty alleviation, employment, and achievement of financial inclusion in the Bodoland area of Assam. Empirical results from an impact evaluation showed that the programme had a positive and statistically significant impact on the monthly income, employment days, and financial inclusion level of participants of the SHG programme, compared to a control group of non-participants.

Identifying factors governing attitude of rural women towards Self-Help Groups using principal component analysis

Self-Help Groups-Bank Linkage Program (SHG-BLP) had expanded significantly and emerged as a dominant model of microfinance in India. National Bank for Agriculture and Rural Development (NABARD) had constituted the teams of acclaimed scientists, technocrats, and practitioners to evaluate the performance and impact of SHG-Bank Linkage Program. These researchers emphasised only physical aspects of the program, and specifically determined the impact of SHG microfinance on the socioeconomic aspect of the rural poor. In this context, the present study aimed at exploring the attitudinal aspect of rural women associated with SHGs. The study consists of a multistage random sample of ‘240’ women SHG members. A well-structured interview schedule, consisting of summated rating attitude scale was administered to the respondents. The findings illustrate that 43.34 percent of the rural women had ‘favourable’ and 26.66 percent had ‘strongly favourable’ attitude towards SHGs. The factor analysis using the principal component method brought forward ‘coping up ability’, ‘personality traits’, ‘resource utilisation and building’, ‘entrepreneurial attributes’, ‘organizational governance’, ‘financial inclusion’ and ‘economic upliftment’ are the precursors of attitude. These seven components could explain 76.02 percent of the total variance in the attitude. Further, study suggests that policy makers, financial institutions and technocrats may consider these seven factors while planning, promoting, implementing, and evaluating any microfinance programme, especially in developing countries. The study also provides a valid and reliable instrument for measuring the attitude of rural women towards SHGs. This Likert-type attitude scale could be widely used in future researches, especially by the scholars from low-income countries for achieving more accurate and reliable results.

Micro Financing Through Women Self-Help Groups and its Socio-Economic Impact- A Case Study of Konkan Region of Maharastra

Micro finance programmes have been receiving a considerable attention world over for their potential to generate income and employment and alleviate poverty. The experience shows that the micro finance programme has a high degree of out reach to women i.e. 82.67 per cent of the aggregate clients in India in 2010, 73 per cent in Latin America, 70 percent in Africa and 88 percent in Asia. In India, National Bank for Agriculture and Rural Development (NABARD) sponsored SHG-Bank linkage programme is the fastly growing micro finance programme in the world covering 97 million poor households as on 31st March, 2011.The research paper was focused to find out whether micro finance really contributed to the socioeconomic empowerment of group members? To what extent, micro financing through women groups benefited the members? Out of 350 Women groups promoted by Sadbhav Foundation (33 groups), Raigarh district, Manav Sadhan Vikas (25 groups), Kudal, Sindhudurga district and Matru Mandir (19 groups), Ratnagiri district (Maharashtra state, India) 77 (22 percent) were selected. Two members from each group (i.e.154 members) were selected deliberately. After joining the groups, the monthly average income and savings of the respondents had shown increase by 133.73 percent and 76.27 percent respectively. The confidence level of the respondents had increased to a great extent. They had reported active participation in socioeconomic activities. Overall personality index had shown growth of 59.01 percent. It was inferred that micro financing through women self help groups had brought a positive change in the lives of the members. The study concluded that poor, discriminated and underprivileged women if join the groups, can come out of poverty.