abhishreshthaa
Abhijeet S
SHG model in India
In India three different models of linkage of SHGs to the financial institutions have emerged. They are Banks, themselves, form and finance the SHGs. SHGs are Formed by NGOs and other agencies but financed by banks.
Banks finance SHGs with NGOs and other agencies as financial intermediaries.
The second model is the most popular model. Almost three-fourths of all the SHGs come under this model.
Only 20% of the SHGs are covered under the first and 8% under the third model respectively.
In India three different models of linkage of SHGs to the financial institutions have emerged. They are Banks, themselves, form and finance the SHGs. SHGs are Formed by NGOs and other agencies but financed by banks.
Banks finance SHGs with NGOs and other agencies as financial intermediaries.
The second model is the most popular model. Almost three-fourths of all the SHGs come under this model.
Only 20% of the SHGs are covered under the first and 8% under the third model respectively.