SHG Bank Linkage Programme
What is SHG?
Self Help Groups means a group which represents a financial intermediation, but the financial intermediation is not the only primary objective of the groups. The idea is to combine the access to low-cost financial services with a process of self management and development. They are ussually formed and supported by NGOs or Government agencies.
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SHGs may or may NOT be registered.
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Number of members is between 10-25. But, for irrigation projects there is no upper ceiling.
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One person from one family can become a member.
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There are regular weekly or fortnightly meetings.
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These members save the amount and this amount is used as loans.
What is SHG Bank Linkage Programme?
The Self-Help Group-Bank Linkage Programme (SBLP), which started as a pilot programme in 1992 has developed with rapid strides over the years.
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SHG-Bank Linkage Programme was started on the basisIn a futures market, basis is defined as the cash price (or spot price) of whatever is being traded minus its futures price for the ..... of recommendation
of S K Kalia Committee.
Under the SBLP, the following three different models have emerged:
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Model I: SHGs promoted, guided and financed by banks.
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Model II: SHGs promoted by NGOs/ Government agencies and financed by banks.
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Model III: SHGs promoted by NGOs and financed by banks using NGOs/formal agencies as financial intermediaries.
Model II has emerged as the most popular model under the SBLP programme. Commercial banks, co-operative banks and the regional rural banksNarasimham Committee and Genesis of RRBs
We all know that the first stage of nationalization that took place in 1969 boosted the confidence of the public ..... have been actively participating in the SBLP.
Current Status of SHG-Bank Linkage Programme:
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In 2009-10, 1.59 million new SHGs were credit-linked with banks, and bank loan of ` 14,453 crore (including repeat loan) was disbursed to these SHGs. Further, at end-March 2010, 6.95 million SHGs maintained savings accounts with banks.
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On an average, the amount of savings per SHG was ` 8,915 as compared to the amount of credit outstanding of ` 57,795 in 2009-10. While there was a continued increase in the amount of credit outstanding per SHG, there was a fluctuating trend in the amount of saving per SHG in the recent years.
