SHG-Bank Linkage Model

The SHG-Bank Linkage Model is a financial framework where banks provide loans and financial services to self-help groups (SHGs)—small, community-based groups focused on savings and development. These groups, often composed of women or marginalized communities, organize collectively to access credit, save money, and improve their economic stability. Banks, recognizing the collective strength of SHGs, extend support through a structured process that reduces risks for lenders and empowers communities. This model fosters financial inclusion, encourages local development, and builds social capital by connecting financial institutions directly with grassroots groups.