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Abstract
Microfinance has become an indispensable part of India’s economy. Nowadays, micro finance has taken a development strategy to address the alleviation of poverty and the empowerment of the society through provision of thrift, credit and other financial services and products of very small amounts to raise the income level of clients and improve their standard of living. Bank and other financial institutions provide financial support to MFIs for further offering financial help to poor and financial needy people. A microfinance institution is an organization that offers financial services to low income populations. The microfinance service providers include institutions like Small Industries Development Bank of India, the National Bank for Agriculture and Rural Development ,Commercial Banks, Regional Rural Banks and Co operative Banks provide micro financial services. Micro finance operate through two main channels in India i.e.,Banking system through the SHGs under Self Help Group-Bank Linkage Programme (SHG- BLP) and joint liability group- JLG bank lending program andMicro Finance Institutions (MFIs) lending through individual and group approach. The study was undertaken to study growth rate of loan disbursement and to study growth rate of loan outstanding of MFI-Bank Linkage Program in India. The bank linkage program is important for poverty alleviation and growth of the economy. The contribution of Cooperative banks and SIDBI is relatively low as compared to Commercial and Regional Rural Banks up to 2015-16. In the year 2016-17, it has increased by a good percentage with the adoption of technology and liberalization of regulatory policies & new business activities. Financial system in India operating highly inclusive growth of rural development preferred social activities of women sector.