Impact of self help group bank linkage programme on socio economic conditions of beneficiaries a case study of Panchkula district of Haryana

Abstract

A pilot project by NABARD in 1992 has grown into a huge movement. The Centre and state governments have made it a cornerstone of their poverty alleviation policy. It is a holistic policy initiative that targets developing human and financial capacities of the poor. It aims at empowering women both economically and socially. It aims at including that segment of population into the financial system which stands excluded due to the problems of absence of collateral, contract enforcement and asymmetric information. Thus, it attempts to bridge the gap left over by existing financial institutions by mobilizing poor women to work for their own welfare. It is a credit-cum subsidy programme backed by training, skill generation and capacity building. From only 500 SHGs in 1992 the number of groups under the SHG-BLP has risen to 79.60 lakhs by March, 2012 (Joshi, 2013). Joint-liability, sequential lending and group responsibility are the three pillars of the SHG-BLP that mitigate the financer s risk of default. Microfinance studies are abounding. However, there is a scarcity of studies in northern regions which examine a multitude of variables. Most studies are either focused down south or have a narrow focus. A comprehensive study of areas in north India with poor connectivity to towns and a hilly terrain is not available. newline