The organization is initiating credit linkages to self-help groups through ICICI Bank, NABFINS SBI ,Allahabad bank, corporation bank, syndicate bank, Bank Of Baroda, Karnataka banks in Hassan Dist. Effect from since 1997 to as on the date. Since the organization credit linked to more than no of 1800 women SHG group members financial credit approximate of Rs. 60Cr.
Advantages of financing through SHGs
- An economically poor individual gains strength as part of a group.
- Besides, financing through SHGs transaction costs for both lenders and borrowers.
- While lenders have to handle only a triple SHG account instead of a large number of small-sized individual accounts, borrowers as part of an SHG minimize or travel (to and from the branch and other places) for completing paper work and on the loss of working days in canvassing for loans.
- Where successful, SHGs have significantly empowered poor people, especially women, in rural areas.
- SHGs have helped immensely in reducing the influence of informal lenders in rural areas.
- Many big corporate houses are also promoting SHGs at many places in India.
- SHGs help borrowers overcome the problem of lack of collateral. Women can discuss their problem and find solutions for it.
- Assets like site, land, house and machines in the name of women
