An Assessment of Self Help Groups with a Keystone of Microfinance in a Strongest State North East of India

This study assesses the growth of SHG-microfinance linkage programs in North East India, particularly in the state of Assam.

The study focuses on two programs, namely, SHG-bank Linkage Program (SBLP) and Swarnajoyanti Gram Swarajgar Yojona (SGSY). It makes inter-state comparisons of progress of the programs in the North Eastern states, and inter-district comparisons in Assam. The study is based on data from secondary sources.

The study reveals that microfinance through SHGs is an important tool for socio-economic empowerment of the poor, particularly women. Findings include:

• Number of bank branches and number of registered NGOs have positive impact on growth of SHGs;
• Government should promote NGOs interested in microfinance;
• Spread of programs within North East region is skewed with the highest concentration in Assam, and within Assam, in Lower Assam and Central Assam districts;
• Currently, the region has only microcredit services, and service providers could introduce other elements of microfinance such as insurance, marketing and technical assistance;
• Quality management of SHGs, greater involvement and orientation of members and incorporation of social security programs in SHG movement are required for sustainability of the programs.