Economic impact of micro loans on the rural women through self help Group-Bank Linkage Programme (SBLP)

Entrepreneurial activities greatly depend on finance. Raising finance is challenging to poor people. It becomes impossible for most women to raise required finance for doing business in male chauvinist society. In India micro finance programme that extends financial support is targeted towards women mostly. Micro Finance programmes are active since 1990 in many states of India. Andhra Pradesh has been in the first position in executing the micro finance programme. The micro finance crisis 2010 in Andhra Pradesh had been a great lesson to the regulators in India and resulted in Micro Finance Bill 2012. Tamil Nadu stands in the second place after Andhra Pradesh in the successful execution of micro finance programme. Micro Finance Programme was initiated by NABARD in India. It was then passed on to Nationalised Banks and other financial institutions as the geographical coverage of the programme was broad. Micro finance programme extends loan and encourages thrift among the beneficiaries. The micro loans extended by the Banks and Non Banking Finance Companies (NBFC) -Micro Finance Institutions (MFIs) do have some concrete impact on the beneficiaries’ lives. The economical impact on rural women made by the Self Help Group Bank Linkage Programme (SBLP) through micro credits, in three districts of Tamil Nadu namely Thiruvallur, Vellore and Kanchipuram is presented here.