Year: 2017 | Month: June | Volume 3 | Issue 1
Micro Finance through Self-Help Group
Rahul Sethi
DOI:000
Abstract:
In the development paradigm, micro-finance has evolved as a need-based programme for empowerment and alleviation of poverty which was so far considered as neglected target groups and micro finance has become one of the most effective interventions for economic empowerment of the poor. The experience across India and other countries has shown a robust potential of Micro finance to integrate with the development issues that significantly impact the lives of poor and downtrodden. Micro finance is a financial service of small quantity provided by financial institutions to the poor. These financial services may include savings, credit insurance, leasing, money transfer, equity transactions etc. that is any type of financial service provided to customers to meet their normal financial needs, economic opportunity and emergency. Micro finance programs are aimed to cater that segment of society which is poor and does not have access to financial services. In India micro finance has been promoted by linking self help groups of the poor with the banks either directly or through non-governmental organizations (NGO’s) in a big way. The scheme of Micro-finance has been found as an effective instrument for lifting the poor above the level of poverty by providing them increased self-employment opportunities and making them credit worthy. The Self help groups (SHG) - bank linkage programme has emerged as the largest micro programme in the world. The SHG- Bank linkage programme in which SHGs are linked to banks in a gradual way- initially through savings and later through loan products is considered to be an effective strategy to ensure financing inclusion.
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