Microfinance is gathering momentum to become a major force in India. The self-help group (SHG) model with bank lending to groups of (often) poor women without collateral has become an accepted part of rural finance. The present article tries to draw attention to the positive impact of SHG's in Eastern U.P. With traditionally loss-making rural banks shifting their portfolio away from the rural poor in the post-reform period, SHG-based microfinance, nurtured and aided by NGOs, have become an important alternative to traditional lending in terms of reaching the poor without incurring a fortune in operating and monitoring costs. The government and NABARD have recognized this and have emphasized the SHG approach and working along with NGOs in its initiatives. In spite of the impressive figures, microfinance in India is still presently too small to create a massive impact in poverty alleviation, but if pursued with skill and opportunity development of the poor, it holds the promise to alter the socioeconomic face of the India's poor.

How to Cite
CHHETRI, Ram Bahadur. A Comprehensive Study on Impact and role of SHGs in Eastern U.P.. Global Journal of Human-Social Science Research, [S.l.], v. 10, n. 2, july 2010. ISSN 2249-460X. Available at: <https://socialscienceresearch.org/index.php/GJHSS/article/view/10>. Date accessed: 19 sep. 2019.