Self Help Groups(SHGs)

India is developing country. Many of the parts of the country still not that much progressed. For the solution of the said problem Micro finance can become the ray of the hope for country. This paper was presented with the intention of exploration of the area of the Micro finance in India. Though the term micro finance is not new but still much more progress is required. Those who live in backward areas and are remote from the basic financial services, can get the employment and financial services under the micro finance. NABARD plays a vital role in development of this sector. Micro finance institutions are in various forms but the Self Help Group form is the most popular one. It may be in the form of micro credit, micro insurance etc. As per the recent published report by NABARD in 2018 the Self help groups- bank linkage programme, reached to 11 crore household through 87 lakh SHG with deposits of Rs. 19500 crore. Government has introduced EShakti programme for the improvement in this sector. Eshakti is a mobile application through which history of the SHG can be recorded. Moreover financial and non financial transactions can be inserted, maintained, modified etc. It is a part of the digitalization. In this paper I tried to derive the maximum recent scenario of this sector. By analysing the government report I can assure that if this sector is more motivated then it can surely become one of the reasons of development of country.

History of microfinance can be traced back to the middle of 1800s when the theorist Lysander Spooner was writing of about benefits of small credits to entrepreneurs. It is the source of financial services to small scale business lacking access to banking and related services. Microfinance refers to a variety of financial services that target low-income clients particularly women since the clients of microfinance companies (MFCs) have lower incomes and often have limited access to other financial services, microfinance products tend to be for smaller monetary amount than traditional financial services. These services include loans, savings, insurance and remittance. Microfinance loans are given for variety of purposes frequently for microenterprise development. This also reflects in diversity of products and services offered. Because of varied needs and because of the industry's focus on the poor, microfinance often use nontraditional methodologies such as group lending or other forms of collateral securities not employed by the formal financial sector.