In the present era microfinance through self help groups has increased attention among the financial service providers, new entrepreneurs and academia, as a better alternative for providing credit to the rural market. A variety of studies have been conducted in this area which have revealed that microfinance is an effective tool for poverty alleviation, supporting the poor to strengthen the assets, increase their incomes, and change their financial state of affairs. According to a leading microcredit rating agency an estimated annual demand of micro finance in India is around Rs. 485 billion with an average household credit demand of Rs 8,000 for nearly 70 million poor families. To meet this huge demand of micro finance we need such customised models and approaches which are capable of providing comprehensive financial support to rural market. In this milieu, various MFIs has played a vital role in strengthening the Self-Help Groups (SHGs) movement in India, and SHG-Bank Linkage Program (SBLP) of (NABARD) being the landmark initiative in this regard. The present paper explores the role and performance of NABARD in SHGs-Bank Linkage Program during last 20 years through various delivery models of microfinance in India. After the analysis, we still observed some skewness in southern states and there were major drifts in the framework of micro finance functioning from nation to states and from states to districts to ensure increase in efficient functioning of micro finance machinery in India to achieve its true essence. To speed up this process of helping the underprivileged the regulatory and surveillance mechanism needs a big push.
Indian Member 40.00
Others Member 3.00