Paper

Status of Microfinance in India 2011-2012

Examining the progress of the self-help group bank linkage program in India
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This report provides an overview of the state of microfinance in India during 2011-12, focusing on the self-help group (SHG) bank linkage program (SBLP). It analyzes data on the extent of savings harnessed and credit availed by SHGs across agencies and geographies. The report also highlights the facilitating role played by NABARD in refining SBLP. The report predicts that the third decade of the SBLP will witness a maturing of program with livelihoods support, product innovations, reforms in leveraging technology to improve efficiency, and extension of outreach to more geographical regions. Findings include:

  • Over 103 million rural households now have access to regular savings through 7.96 million SHGs linked to banks;
  • SHG savings balance with banks has declined by 6.7% compared to the previous year, although number of SHGs saving linked has grown by 6.7%;
  • Number of SHGs having loans outstanding with banks has declined partly due to continued decline in the number of SHGs being extended fresh loans by banks;
  • Quantum of fresh loans issued to SHGs by banks rose by 13.7% during the year.