Financial and Promotional Supports from Nabard Under SHG – Bank Linkage Programme

Abstract

The main objective of this paper is to examine the financial supports and promotional efforts from NABARD for the progress of SHG-Bank linkage programme in India. NABARD extends refinance to banks for lending SHGs. Micro finance development and equity fund has been created by NABARD to facilitate and support the orderly growth of micro finance sector. Training and capacity building programmes are conducted by NABARD for the benefit of officials of banks, NGOs, SHGs and government agencies to enhance their effectiveness in the field of micro finance. NABARD extends grant support for formation and nurturing of joint liability groups. The micro enterprise development programme has been launched by NABARD to enhance the capacities of the members of matured SHGs to take up micro enterprises through the appropriate skill up-gradation. NABARD extends grant support to its partner agencies for promotion and nurture of SHGs. SHG- post office linkage programme has been launched by NABARD for releasing the potential of post offices to extend the micro finance initiatives. NABARD extends grant support to the SHGs federation for training, capacity building, and exposure visits of SHG members. NABARD has introduced a scheme for supporting small –scale active based groups, wherein capacity building, production, and investment credit and market- related support would be extended. NABARD has been associated with Rajiv Gandhi Charitable Trust for promotion, credit linkage and formation of SHG’s federation.