Role of NABARD’S SHGS-Bank Linkage Programme in Making the Dream True of Self-Help Groups in India

Abstract

The study is basically focused on NABARD’s SHG-bank linkage program (SHG-BLP), BLP’S contribution on fulfilling the motive of SHG groups, which is to improve the condition of financial literacy among the women, especially those women who are belonging to those areas where the availability of banking facilities is very low or negligible. In this regard, NABARD is promoting self-help groups through linking them with the banks for their better and easy performance to provide financial and security support, like availability of loans and collecting savings. The SHG-BLP was started in 1992-93 as a preparatory project to link around five hundred poor households. Study found that the overall contribution of this program for serving better facilities is very effective. Both the SHG bank linkage with bank through their saving amounts and distribution of loans are showing an increasing trend, but the outstanding amount of loans is in a negative trend, which is showing kind of some inefficient work of banks in recovering the loan amount, but in the end we can say that banks are contributing a lot to women's empowerment, making them independent, and their overall socio-economic development. Banks are really helping in achieving the motive of SHG.