Role of Non-Governmental Organisations in Micro Finance through SHGS — A Study in Bijapur District of Karnataka

This paper has analysed the role of non-governmental organizations (NGOs) in sustainable rural development through microfinance and transfer of technology. The study has reported that NGOs play a vital role in the formation of self-help groups (SHGs), in motivating women to join these groups and linking these groups with banks for microfinance. But, NGOs performed a little role in marketing of products of SHGs and release of subsidies. These organizations have played a substantial role in developing financial services for the poor and their influence has been significant in (i) Pursuing a broader common vision and mission, particularly towards the poorest; (ii) Offering clients a larger range of products and services; (iii) Advocating the beneficiaries to upgrade their knowledge with regard to new and applied technologies (transfer of technology). There are some strong criticisms also about the role of NGOs. Their reach to the poorest is limited; they are not effective in dealing with poverty, illiteracy and empowerment of the poor.