The SHG Bank linkage programme is in operation in the country since last several years. The objective of the programme is to provide Micro Finance to the poor in rural, semi-urban and urban areas for enabling them to improve their living standard by generating income through employment of very small fund in different services and productive activities.
An SHG is a small, economically homogenous group of poor people having a common perception of need and impulse towards collective action, voluntarily formed to save and mutually agreed to contribute to a common fund to be lent to its members as per group decision for meeting the emergent needs of the members, both for productive and consumption purposes to raise their income and improve their living standards. The salient objectives are as follows-
Membership-The membership of the group should be restricted between 10 to 20. Registration of group is not obligatory for credit linkage with Banks.