Sustainability of Microfinance through Self Help Groups

Microfinance has become an imperative force to combat poverty across the world especially in developing countries. In India, microfinance has become a significant force with self-help group (SHG) model and bank lending to groups, mostly women, being an acknowledged part of rural finance. The main objective of SHG's is to enable the poor of the poorest to obtain funds and utilize their skills to improve their economic conditions. Also, it is meant to do away with unfair practices and empowering people to be self dependant. These groups usually have not more than 20 members ensuring dynamic inputs along with faster decision making and transparency.