Banking on Self-Help Groups: Twenty Years On

This book provides an overview on the evolution of SHG-banking linkages. It tries to trace the origins of banking SHGs in India and analyzes the methodology of SHGs in financial intermediation as it has evolved over the years.The book discusses the growth and performance of SHG-bank linkage program and explores the role of NGOs and community organizations as financial intermediaries. The book lists and evaluates in detail the various government SHG programs, the cost of promoting SHGs and SHG federations, and their sustainability. The book records the following on SHGs:

• Helped promote the savings habit of SHG members;
• Improved members access to credit from mainstream financing agencies;
• Reduced the dependence on moneylenders through availability of credit at lower rates;
• Increased the use of loans for income generating activities;
• Yielded moderate economic benefits in the form of higher household incomes, food security and in asset holdings;
• Contributed to increased household employment and poverty reduction;
• Resulted in empowerment benefits to women, who through the experience of self-management of the SHG acquired self-confidence and voice in the household and in the community.