SHG-Bank Linkage Programme

iAbout This Scheme

The SHG-Bank Linkage Programme, launched by NABARD in 1992, is the world's largest microfinance programme linking Self Help Groups (primarily women) directly to formal banking channels. SHGs save collectively and access bank credit without collateral. Over 1.4 crore SHGs have active bank linkages providing credit to rural poor households.

🎁Key Benefits

• Credit access for rural poor through savings-linked bank loans
• Typically 4x savings as bank loan; larger amounts for mature SHGs
• No collateral required
• Empowers women financially and socially
• Interest subvention for SHG loans at 7% p.a. (4% effective under subvention)
• Savings habit and financial discipline through group mechanism

✅Eligibility Criteria

• 1
  Self Help Groups of 10-20 members (primarily women)
• 2
  Groups with 3-6 months of savings and internal lending record
• 3
  Preferably BPL household members

📝How to Apply

❓Frequently Asked Questions