Scaling the Financial Sustainability of SHGs-Bank Linkage Programme of Micro Financing in an Underdeveloped Region

Scaling the financial sustainability of SHGs-Bank Linkage Programme of Micro Financing in an Underdeveloped Region, Prajan, Vol. XXXVIII, No.4, 2009-10, Pp-253-267

Posted: 16 Apr 2014

See all articles by A. P. Pati

A. P. Pati

North Eastern Hill University

Date Written: March 31, 2010

Abstract

Financial sustainability of micro financing endeavour through SHG-Bank Linkage Programme (SBLP) is crucial as nearly 40 million beneficiaries are linked to the formal banking network of India. Scaling the sustainability through a composite index is one of the several attempts. Considering various parameters of SHGs, their linked banks and of the SBLP as a whole a composite index is constructed in the context of Meghalaya, which is an underdeveloped state in the north eastern region of the country. The rising index over a three year of study period provides enough indication towards the sustainability of this programme. Poor loan recovery rate of the banks, negligible share of SHG finance in total loan portfolio of the banks, negative impact of subsidy on the SHGs and high operating expenditures are identified as some of the drags for the financial sustainability of the whole programme.

Suggested Citation

Pati, Ambika Prasad, Scaling the Financial Sustainability of SHGs-Bank Linkage Programme of Micro Financing in an Underdeveloped Region (March 31, 2010). Scaling the financial sustainability of SHGs-Bank Linkage Programme of Micro Financing in an Underdeveloped Region, Prajan, Vol. XXXVIII, No.4, 2009-10, Pp-253-267 , Available at SSRN: https://ssrn.com/abstract=2425086

Ambika Prasad Pati (Contact Author)

North Eastern Hill University ( email )

Umshing-Mawkynroh
Shillong
Meghalaya, 793022
India

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