Introduction

      The Self Help Group Banking Linkage pilot programme was initiated in the year 1992 which tried to facilitate the flow of bank credits to SHGs.  The rural poor may not be able to form groups by themselves to command a sufficient strength to approach and negotiate with external agencies like banks for funds. With a view to make thrift and credit activities meaningful for economic empowerment, the groups are gradually encouraged to deploy their funds in investment or income generating activities.  The SHGs are not only resorting but are also taking small loans out of the corpus available with the group.

  1. Self Help Groups, which have been in active existence for (6) months are eligible for loans from Banks under SHG Bank Linkage Programme.
  2. The entitlement of SHGs which are in the 1st dose is Rs. 50,000/-, 2nd dose is Rs. 1,00,000/- and 3rd dose and beyond is up to Rs. 5,00,000/- based on micro credit plan.