The Self Help Group-Bank Linkage Program (SHG-BLP), established in the early 90’s, was the NABARD’s pilot movement for the promotion of financial inclusion amongst the poor population. Although SHG-BLPs offer loans at lower rates as compared to MFIs, the growth in disbursements by SHG-BLPs has been slower as compared to that by MFIs.
MFI credit has recorded stronger growth as compared to rural bank credit due to the following reasons:
• The door to door service offered by MFIs.
• Lower processing time and lesser documentation while processing a loan
• Lack of awareness amongst prospective population with reference to availing loans from the banking system.
• Weak on-the-ground collection mechanism of banks vis-à-vis MFIs (which is demonstrated in the graph below)
•
Repayment rate experienced under SHG-BLP (per cent of total …show more content…
Mohana Rao R.M., “A Study of Women Self-help Groups in Andhra Pradesh”, (Andhra University, 2000. )
2.. Stephanie Janet Microfinance: its impacts on Children and Women." These study explore the type of impacts that microfinance can have on women and children. More specifically, it examines: the impact on women: women empowerment; women knwoledge of health, nutrition, and other basic social services messages the impact on children: education , health and nutrition; child labor; the impact on the community etc.(2001)
3) Hotze B. LONT Financial SHOs, Social Security, and State Involvement"
At Java a wide variety of financial SHOs are popular,They can perform a wide variety of functions. One of them is the insurance function. In this respect, financial SHOs can play a part in the social security fabric that people develop and maintain in order to cope with risks and uncertainties. The Indonesian government has not made efforts to use these MF institutions to develop a state social security system. 2000 Amsterdam School for Social-science Research)
4) Awuor S. Odaga The Magic Key ? Microcredit Finance and the
MFI credit has recorded stronger growth as compared to rural bank credit due to the following reasons:
• The door to door service offered by MFIs.
• Lower processing time and lesser documentation while processing a loan
• Lack of awareness amongst prospective population with reference to availing loans from the banking system.
• Weak on-the-ground collection mechanism of banks vis-à-vis MFIs (which is demonstrated in the graph below)
•
Repayment rate experienced under SHG-BLP (per cent of total …show more content…
Mohana Rao R.M., “A Study of Women Self-help Groups in Andhra Pradesh”, (Andhra University, 2000. )
2.. Stephanie Janet Microfinance: its impacts on Children and Women." These study explore the type of impacts that microfinance can have on women and children. More specifically, it examines: the impact on women: women empowerment; women knwoledge of health, nutrition, and other basic social services messages the impact on children: education , health and nutrition; child labor; the impact on the community etc.(2001)
3) Hotze B. LONT Financial SHOs, Social Security, and State Involvement"
At Java a wide variety of financial SHOs are popular,They can perform a wide variety of functions. One of them is the insurance function. In this respect, financial SHOs can play a part in the social security fabric that people develop and maintain in order to cope with risks and uncertainties. The Indonesian government has not made efforts to use these MF institutions to develop a state social security system. 2000 Amsterdam School for Social-science Research)
4) Awuor S. Odaga The Magic Key ? Microcredit Finance and the