Status of Microfinance in India: 2008-09

This booklet analyzes trends and progress of microfinance in India, and focuses on developments under two models namely, Self Help Group (SHG)-Bank Linkage model and MFI-Bank Linkage model. It is based on consolidated data obtained from banks and other primary sources.

Microfinance has evolved to include microinsurance, microremittance, micropension and microlivelihood. Financial institutions have worked proactively with informal delivery channels to add momentum to microfinance growth.

The policy environment for SHGs has undergone significant change with government agencies and international organizations launching livelihood programs with SHGs as the delivery channel. The booklet states that:

• SHG-Bank Linkage Program is growing steadily and is likely to cover its target of 10 million SHGs before 2015;
• MFIs are expanding their horizon of services through the SHG route;
• Several variants of SHGs such as joint liability groups are operating in different parts of India;
• Mature SHGs are facilitated to carry out the wide spectrum of value chain in farm and non-farm sectors;
• Mature SHGs are likely to assume the role of business facilitators and business correspondents.