The book examines the effects and ramifications of interest rates on SHG members under the NABARD Programme on bank-SHG linkage with the help of data collected from a large number of SHGs formed by the Grama Vikas, Karnataka. Altho9ugh the banks did not incur much cost towards training, selection and monitoring of the borrowers, they benefited a great deal from higher recovery rates under the linkage programme. The SHGs, on the other hand, spent considerable time in the selection, monitoring and repayment of loans. They also incurred costs on account of loan defaults and other expenditure. The interest rates under the linkage programme had debilitating impact on income from the activities undertaken by the SHG member. The book concludes that the banks were faced with win-win situation while SHGs and members were faced with loss-loss situation. There is, therefore, a case for the NGOs, donors and development workers to advocate a reduction in the interest rates changed by the banks under the NABARD bank-SHG linkage programme.
ABOUT THE AUTHOR D. Rajasekhar
Prof D. Rajasekhar, who heads the centre for decentralization and development at the Institute for Social abnd Economic Change, Bangalore, India, is a development economist. With vast experience in social science research, he has been providing policy support ti the government, donors, NGOs, etc. He has undertaken many research studies for the government and external agencies such as the World Bank, ILO, GTZ, etc. He was the team leader for a major research study on Roles of Local Organisations in development projects, Supported by the World Bank. He has published 12 books and over 40 research articles in various journals and edited books.
ABOUT THE AUTHOR N Krishne Gowda
Mr. N Krishne Gowda works at the Centre for decentralization and development, Institute for Social and economic Change, Bangalore. He has been specializing in the4 Areas of micro-finance through self-help groups and child labour.
ABOUT THE AUTHOR R. Manjula
Ms. R. Manjula works at the centre for Decent4alisation and development, Institute for Social and economic Change, Bangalore. Her areas of In6erest include micro-finance, fiscal decent4ralisation, ad gender and collective action.
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