NABARD tar­gets 21 lakh credit-linked SHGs in 2017-18

G.R. Chin­tala, CGM, Mi­cro Credit and In­no­va­tions Depart­ment, NABARD, speaks about the bank’s ‘Self Help Group Bank Link­age Pro­gram’, which has com­pleted 25 years in the cur­rent FY:

Banking Frontiers - - SHGs - Me­hul@bank­ingfron­

The ‘Self Help Group Bank Link­age Pro­gram’ of NABARD now cov­ers 100 mil­lion ru­ral fam­i­lies through 8.5 mil­lion SHGs in In­dia with sav­ings de­posits of `161 bil­lion and loan out­stand­ing of over `616 bil­lion. Dur­ing 2016-17, bank loans worth `388 bil­lion were dis­bursed to 1.9 mil­lion SHGs. The pro­gram has reached the mile­stone time­line of 25 years. Launched in 1992 with a tar­get of link­ing 500 SHGs in a year’s time, it is today the world’s largest mi­cro­fi­nance pro­gram.


Says G.R. Chin­tala, CGM, Mi­cro Credit and In­no­va­tions depart­ment at NABARD: “There are 17.16 lakh credit-linked and 73.22 lakh sav­ings-linked ex­clu­sive women SHGs. State Bank of In­dia has the largest num­ber of sav­ings-linked ex­clu­sive women SHGs - 625,048, hav­ing to­tal sav­ings of `18.23 bil­lion, fol­lowed by In­dian Bank (372,968 SHGs, `10.42 bil­lion) and Union Bank of In­dia (370,026 SHGs, `6.14 bil­lion) as of 2016-17.”

He adds: “On the other hand, ICICI Bank leads among the pri­vate banks with 252,696 ex­clu­sive women sav­ings-linked SHGs, hav­ing `2.42 bil­lion in sav­ings, fol­lowed by HDFC Bank (167,978 SHGs, `1.56 bil­lion) and YES Bank (134,359 SHGs, `1.04 bil­lion). The top 3 co­op­er­a­tive banks are West Ben­gal State Co­op­er­a­tive Bank, fol­lowed by 2 DCCBs from Ma­ha­rash­tra: Kol­ha­pur DCCB and Pune DCCB.”


NABARD pro­vides grant sup­port to Self Help Pro­mot­ing In­sti­tu­tions (SHPIs), which in­clude NGOs, RRBs, co­op­er­a­tive banks, IRVs, farm­ers’ clubs, SHG fed­er­a­tions, PACS and NGO-MFIs for pro­mo­tion, nurturing and credit link­age of SHGs. Chin­tala states: “NABARD has cu­mu­la­tively sanc­tioned grant sup­port of `3.62 bil­lion for for­ma­tion of 8.11 lakh SHGs. We have cu­mu­la­tively re­leased `1.28 bil­lion against sanc­tion for pro­mot­ing 5.41 lakh groups.”


The cen­tral gov­ern­ment has planned, as part of the ex­ist­ing NRLM, to fa­cil­i­tate women-led SHGs by giv­ing them bank loans of over `100,000 and up to `300,000 for un­der­tak­ing var­i­ous ac­tiv­i­ties at easy interest rates.

All women SHGs that avail off loans up to `300,000 from banks are charged interest at the rate of 7% per an­num and they also get ad­di­tional interest sub­ven­tion of 3% of timely re­pay­ment. The gov­ern­ment has also fa­cil­i­tated avail­ing of bank credit of around `300 bil­lion per year. This is now be­ing tar­geted to be dou­bled to al­most `600 bil­lion per year till 2019.

G.R. Chin­tala points our that NABARD has been proac­tive in pro­vid­ing grant sup­port for pro­mo­tion, nurturing and credit link­age of SHGs

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