In the context of microfinance in India, the concept of SHG-BLP is used. What does L stand for in SHG-BLP?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. Linkage.
In the context of microfinance in India, SHG-BLP stands for Self-Help Group – Bank Linkage Programme. Here, the letter “L” refers to Linkage. This programme, launched by NABARD in 1992, connects Self Help Groups (SHGs) with banks to provide them access to formal credit facilities. It encourages group savings, collective decision-making, and lending to members for income-generating activities. The SHG-BLP model has been a significant tool in promoting financial inclusion, women’s empowerment, and rural development by integrating grassroots groups with the formal banking system.