SHG–Bank Linkage Programme (SBLP)

Why it matters

Turns your Self-Help Group's savings into bank credit — the world's largest microfinance programme links graded SHGs directly to banks for cash-credit limits.

What you get

Links Self-Help Groups to formal banks for savings-linked credit: after grading, banks extend cash-credit / term loans (typically 1:4 to higher multiples of group savings) at concessional rates for members' income-generating activities.

Eligibility criteria

• SHG active for at least 6 months with regular savings
• Maintained the Panchasutra discipline
• Group graded satisfactorily by the bank / SRLM
• SHG savings account with the lending bank

How to apply

1. 1

   Open and operate an SHG savings account for the qualifying period

2. 2

   Request grading from the bank / SRLM

3. 3

   Bank sanctions a cash-credit limit / term loan against savings

4. 4

   Group on-lends to members and repays regularly

Documents required

• SHG bank passbook
• Meeting minutes & savings ledger
• Grading report
• Member list