Microfinance is now an accepted institutional framework for taking financial services to the poor. It is but natural that microfinance should have had tremendous growth in India--the home to the largest concentration of poor. In India the microfinance technology that had a relatively higher growth in the last decade is the self-help group (SHG). This lays stress on thrift as well as credit and also on the linkage between informal groups and formal financial institutions. An important sine qua non in this technology is the institution that promotes the SHGs. In India, SHGs have been promoted by nongovernmental organizations (NGOs), banks and the government. This paper attempts to compare the role of these three institutional variants in promoting the SHGs, their strengths and weaknesses, and the best practices that could be copied from them.
Mr. p.Satish is at present a faculty member with the Bankers Institute of Rural Development, Lucknow, India, on secondment from the National Bank for Agriculture and Rural Development (NABARD), which is the apex bank for agriculture and rural finance in India. He has also worked with the Reserve Bank of India, the central bank of the country. He has an MBA (Finance) from Osmania University in India and an MS in Economic Policy from the University of Illinois at Urbana- Champaign.
Journal of Microfinance
Issue and Volume
BYU ScholarsArchive Citation
"Institutional Alternatives for the Promotion of Microfinance: Self-Help Groups in India,"
Journal of Microfinance / ESR Review: Vol. 3
, Article 4.
Available at: http://scholarsarchive.byu.edu/esr/vol3/iss2/4