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30 years of SHG -BLP

·         NABARD, through its’ small Credit Innovations Department has continued  its role because the supporter and mentor of microfinance initiatives within the country.

·         The model of ‘SHG-BLP’ has evolved as an economical mechanism for providing monetary services to the unreachable and underserved poor households.

·         What started as a pilot to link around 500 SHGs of poor to the formal financial institutions during the year 1992-93 has now become the largest microfinance programme in the world, in terms of the client base and outreach.

·         The SHGs that follow ‘Panchsutras’ viz. conduct of standard group conferences, regular savings among the group, internal loaning supported the demand of members, timely compensation of loan and maintenance of correct books of accounts – thought of to be of good|of excellent|of fine} quality and over years have proven themselves to be good customers of Banks.

·         The non-governmental organization sector has contend a distinguished role of operating as a Self facilitate group Promoting establishment (SHPI) by organizing, nurturing and enabling  credit linkage of SHGs with banks.

·         NABARD later co-opted several others as SHPIs together with the agricultural monetary establishments (RRBs, DCCBs, PACS), Farmers’ Clubs (FCs), SHG Federations, Individual Rural Volunteers (IRVs) etc.

·         These stakeholders were encouraged to take up promotion of SHGs by way of promotional grant assistance from NABARD.

·         This savings led microfinance model has currently become the biggest coordinated monetary inclusion programme within the world covering almost one hundred million households within the country.

·         With over eighty four of the teams being completely ladies teams, the programme has provided the a lot of required push to empowerment of ladies within the country.

·         Banks are also provided 100% refinance support by NABARD for financing of SHGs. 

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