Grameen Bank Groups and Self-Help Groups: What are the Differences?
Analogies and differences between 'solidarity groups' and 'self-help groups'
This paper describes and compares the two major group-based systems of microfinance; the 'solidarity groups' as pioneered by the Grameen Bank in Bangladesh and the 'self-help groups' which have evolved from traditional revolving savings and credit group and are now widely used as intermediaries by banks in India. The outreach, the costs and the institutional implications of each method are compared. Neither is 'better' than the other, but they are very different, and it is important to appreciate the differences and to chose the system which is appropriate for local client and institutional realities.
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