Models to Deliver Micro Finance :
In Republic of Republic of India due to adoption of “Multi Agency Approach” for the evolution of micro Finance Programme. All the major fiscal institutions viz, Commercial Banks, Co-Operative Banks, Regional Rural Banks, along amongst NGOs in addition to MFIs direct maintain been associated amongst the micro finance programme. These institutions made experiments amongst diverse models to deliver micro finance at the door steps of the rural poor. Of all the models, the SHG-Bank Linkage model in addition to Joint Liability Group (JLG) model (popularly know equally Grameen model) are the most prominent micro finance models inwards India.
1. SHG, Bank Linkage Model
It is a modest voluntary association of misfortunate people having mutual socio-economic dorsum dry soil meeting to solve their mutual problems through self help.
Programmes : The SHG promotes modest savings amidst members in addition to such savings volition endure deposited inwards banking concern on the cite of SHG. This SHG does non direct maintain to a greater extent than than twenty members. The Banks termination loans to groups basing on their savings in addition to internal credit behavior. The SHG Bank linkage model is emerged equally a major micro finance work concern model inwards India. This model tin mail away endure farther classified into 3 groups.
- SHG – Bank Linkage Model – I : Banks themselves accept upwardly the move of forming in addition to nurturing the groups, their saving banking concern accounts in addition to providing them banking concern loans.
- SHG – Bank Linkage Model – II : SHGs are formed past times NGOs in addition to formal agencies but are straight financed past times banks.
- SHG – Bank Linkage Model – III : SHGs are financed past times banks using NGOs in addition to other agencies equally fiscal intermediaries.
2. Joint Liability Group Model : It is a modest grouping of prospective borrowed amongst iv or five Members – First event exclusively ii members are eligible for loan from Micro Finance Institution. If the start ii borrowers repay the main summation involvement over a catamenia of 50 weeks in addition to thence other fellow member of the grouping expire eligible themselves for a loan. Because of these restrictions at that spot is substantial grouping pressure level to continue private records clear. In this sense, collective responsibleness of the grouping serves equally collateral on the loan. Grameena model propounded past times Prof. Mohammed younus, the manly individual raise of micro finance motility inwards People’s Republic of Bangladesh in addition to Nobel laureate, is the base of operations for this model . Unlike the SHG, the sole role of beingness of a JLGM is to have a grouping loan from a MFI.
NABARD has taken a biased stand upwardly towards the SGH – Bank linkage model. Grameena model has non received proper attending in addition to thence far. It is exclusively after seeing the success inwards People’s Republic of Bangladesh the RBI made upwardly its demand heed inwards favor of the Grameen model .The province of affairs has turned favorable for Grameen model of belatedly in addition to unopen to banks direct maintain started interest.
Evaluation of Micro Finance Sector inwards India
Following are unopen to of the features of Micro Finance inwards India, which is progressing rapidly.
- SHB – Bank Linkage Model is pop inwards its scale, geographical coverage in addition to out reach. Thsi model is started equally a airplane pilot projection of NABARD. It has expire a motility now. It brought cite in addition to fame to india inwards the globe of micro finance.
- Out of 3 SHG – Bank Linkage models, model II takes lion’s shares.
- Among fiscal institutions commercial banks direct maintain the highest part inwards linkage amongst SHGs followed past times RRBs in addition to co-operatives.
- Southern part obtains amend linkage in addition to secured highest loans.
- Among the states, Andhra Pradesh occupies start house inwards price of linkage in addition to credit disbursal.
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