SBI has actively participated in SHG-Bank Credit Linkage programme since its inception in 1992 as a pilot project of NABARD. Since then, the Bank has made a steady progress in financing SHGs. Our market share in SHG credit linkage is 23.65% (March 2018) among public sector Banks.

As on 31st March 2018, Bank's lending to SHGs is Rs.10,551 crore to 5.91 lac SHGs, of which 91% are women SHGs


(i) Sensitization of staff working in rural and semi-urban branches.

(ii) Training programmes on SHGs are conducted at 54 Learning Centers and SBIRD, Hyderabad.

(iii) Close liaison with NGOs

(iv) Lending to NGOs / Federations of SHGs / MFIs

(v) Training /skill up-gradation through 151 Rural Self Employment Training Institutes (RSETIs)

(vi) Financial Literacy Centers (FLCs): 338 FLCs conduct camps, seminars and workshops to create financial awareness among people.

(vii) Scheme for Promotion of Women SHGs implemented through anchor NGOs in 150 backward / Left Wing Extremism (LWE) affected districts.

(viii) Cash credit facility provided to SHGs to facilitate flexibility in operation. SHG members can save variable amount over and above the minimum saving fixed by the group. This forms part of saving corpus for the purpose of arriving at loan limit to SHGs.

(ix) Scheme for Financing (SHGs) of Scheduled Tribes (STs) for channelizing the funds of National Scheduled Tribes Finance and Development Corporation (NSTFDC).

(x) Under National Rural Livelihood Mission (NRLM) scheme, loans to Women SHGs are provided at 7% p.a. interest rate in 250 identified districts. Prompt payee SHGs gets additional subvention of 3% p.a.

(xi) Under Joint Liability Groups (JLGs), loans are granted to groups for economic activities like crop production, allied agricultural activities, etc.

FAQ on Micro Credit

Q 1. For what purposes the Bank provides the loans to SHGs?

Ans.The Bank provides loans to SHGs for meeting entire credit requirements of the groups like income generation activities, social needs like housing, education, marriage and debt swapping.

Q 2. What kind of facilities does the Bank provide to SHGs?

Ans.The Bank provides both Term Loans and Cash Credit limits to SHGs.

Q 3. What is the quantum of loan to the SHG?

Ans.The quantum of the loan depends on the saving corpus of the group. The first loan to group should not exceed four times the corpus. In case of repeat loans, higher need based loan can be sanctioned based on its rating score, credit absorption capacity, managerial ability and risk taking ability.

Q 4. Is any margin required to be contributed by the SHGs for loans?

Ans.There is no margin requirement. The group corpus is treated as margin.

Q 5. What is Group Corpus?

Ans.Group Corpus includes amount of savings in Bank account of SHG, amount utilized for internal lending and cash Balance with SHG.

Q 6. Does the Bank have any scheme for lending to Micro Finance Institutions (MFIs) / Non Government Organizations (NGOs)?

Ans. Yes, the Bank provides Term Loan and Cash Credit facility to MFIs / NGOs/Business Associates for on-lending to SHGs / JLGs / Individuals.