SHGs-bank linkage programme and financial inclusion-An econometric analysis

Financial inclusion is the delivery of financial services at an affordable cost to the marginalized groups, by providing them with timely and adequate access to the financial products and services and it is also a strategy for eradicating the poverty. Through disbursement of funds by various methods of financial inclusion like self-help groups and microfinance by Banks an attempt has been made by the Govt. to provide women economic independence & self-confidence, as well as achieve more respect in their socially defined roles. Micro financing through Self Help Groups (SHGs) has transferred the real economic power in the hands of women. SHGs represent a unique approach to financial intermediation or micro-credit. Nearly 70% of Indian population resides in villages and among them 48% are women. SHGs provide micro-loans to women member which helps them to become self-dependent. SHGs play a vital role to improve the socio-economic condition of women folk by developing thrift habit and providing micro finance in times of need and also encouraging micro entrepreneurs. With this backdrop this study going to make an analysis of the strength of SHGs programme to achieve Financial Inclusion and this study highlighted the role of SHGs in financial inclusion with the SHGs-Bank Linkage programme. Thus SHGs help the deprived section of people to enter into formal financial sector and through that social and economic empowerment.