Microfi nance in India: the way forward
The credit programmes introduced and expanded by non-governmental rrganisations (NGOs) under self-help groups (SHGs) could reach poorest of the poor as these groups work on the lines of mutual trust as well as equal participation. National Bank for Agriculture and Rural Development (NABARD) promoted and encouraged this concept to function as financial intermediaries to flow funds to the micro-entrepreneurs. It evolved mechanism to integrate the SHGs with formal banking institution through SHG Bank Linkage Programme (SBLP). Financial systems have been described as a vital for economic development in both developed and developing countries. The post-linkage scenario shows a very positive trend more than five members in four groups have taken up food-processing units. However, the amount borrowed per SHG is high among the Swarnajayanti Gram Swarozgar Yojana (SGSY) groups. The study identified some potential strength of groups in providing access to savings and credit facilities.