Explain models of SHG-Bank Linkage giving suitable examples
The Self-Help Group (SHG)-Bank Linkage Program (SBLP) is a microfinance initiative in India aimed at linking informal groups of individuals, primarily women, with formal financial institutions. It enables SHGs to access financial services such as savings, credit, and insurance through banks. Several models of SHG-Bank Linkage have emerged over time, each addressing the specific needs and challenges of different communities.
### Model 1: SHG-Bank Direct Linkage
This model involves a direct relationship between SHGs and banks. SHGs maintain savings accounts with a bank, and after a track record of regular savings and internal lending, they are eligible for bank loans. The loan amount depends on the group's savings and repayment performance. Banks typically sanction loans as multiples _________ _________ ________ __________ _______ ___.
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