SHG Model and Financial Inclusion
SHG Model in India : “The tipping point is that magic moment when an idea, trend, or social behavior crosses a threshold, tips, and spreads like wildfire.” ~ Malcolm Gladwell. This statement might have been just said on SHG (Self Help Group) movement in India. The rural landscape of India has mushrooming with SHGs. Formal credit system has, over the years failed to deliver in rural India. The transaction costs of the rural credit systems are very high and the system is plagued by non-performing assets. SHG were started as a pilot project of 500 SHGs, by Nabard in 1992, they grew slowly. SHG are viewed today as an entry point in rural landscape for NGO, Bankers, government and even MNCs. Self Help Groups (SHGs) are informal associations of up to 20 women (their average size is 14) who meet regularly, usually once a month, to save small amounts (typically Rs 10 to 50) a month. Majority of SHGs are single-caste groups based on basis of neighbourhood and affinity...