Self Help Group Linkage Programme: A Case-Study in India

This case-study examines the group lending mechanism of a particular Microfinance Institution working in Haryana, India. The Microfinance Institution restricted the number of group members that could borrow simultaneously from it and allowed the internal lending amongst the group members. We found evidence of negative assortative matching in groups, i.e., the relatively wealthy individuals group- ing with poorer individuals, with the wealthier members obtaining a higher proportion of the loans in the group.