SHG Bank Linkage: Lending a Helping Hand?

Abstract

A world-wide study to index Financial Inclusion to assess the extent of penetration of banking services saw India rank a lowly 50, out of the 100 countries covered in the survey. This creates a need for dedicated initiatives in the field of financial inclusion and Economic Empowerment from across the Private, Public and Social Sectors. Various corporate firms have taken up the initiative of facilitating financial inclusion, Lupin Human Welfare and Research Foundation (LHWRF) is one such organization involved in creation of Self Helf Groups (SHG) and its linkage to bank. The case discusses the issues pertaining to SHG Bank linkage and critically analyzes the initiatives of the government in the field. By examining the Loan utilization pattern, the paper analyzes the sustainability of the model and discusses the shadows and lights associated with the SHG Bank linkage model.