NGO micro finance and socio-economic development of women – a case study of Karnataka

In this paper an attempt is made to review the current status of micro finance sector in the state of Karnataka, in terms of potential demand for micro finance services, current level of outreach and supply in relation to the potential, and extent of involvement of various types of institutions. The rural bankers, NGOs and some government functionaries have done splendid work in the development of self-help groups in the state of Karnataka. The state of Karnataka has been a pioneer in the programme of SHG Bank Linkage and is indeed hailed as a laboratory for micro finance innovations. Under the “Stree Shakthi” programme of Government of Karnataka, the Department of Women and Child Welfare is actively involved in the promotion of SHGs. On the other hand the Regional Rural Banks have themselves promoted thousands of SHGs and have credit linked them a commendable service indeed.