Question

What are the emerging models of SHG-Bank Linkage? Explain any two models of your choice in brief.

10 Sep 2023
Answer :
Word Count : 533

Self-Help Group (SHG)-Bank linkage is an important financial inclusion strategy that empowers marginalized communities, especially women, by providing them with access to formal financial services. Over the years, various models of SHG-Bank linkage have emerged to facilitate this process. Here are two emerging models:

  1. Joint Liability Group (JLG) Model:

    The Joint Liability Group (JLG) model is an extension of the SHG-Bank linkage concept. In this model, small groups of individuals, typically 4 to 10 members, come together for the purpose of availing loans from formal financial institutions, primarily banks. Each member of the group acts as a co-guarantor for the loans taken by other ____ _______ _____ ________ ________.
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