It has been a universally accepted fact that micro-financing is a very
Successful instrument for eradication of poverty. Most of the governments in
developing Countries are encouraging micro-financing for alleviation of Poverty
and Empowerment of Women in their countries. In India also NABARD has been
playing a leading role in micro-financing programme for the last' two decades
now. This Model involves the SHGs financing directly by the Banking agencies
viz. Commercial Banks (Public Sector and Private Sector), Regional Rural Banks
(RRBs) and Co-operative Banks. It has encouraged lending through Self-Heip
Groups (SHGs) after achieving successful Results from a pilot project of 500 SHG
Bank linkage programmes in 1992-