The Best Model for Micro-Lending: Self-Help Group or Joint Liability Group?

Sarma, Sushanta Kumar and Mehta, Madhavi H (2014) The Best Model for Micro-Lending: Self-Help Group or Joint Liability Group? Journal of Rural Development, 33 (3). pp. 247-260.

Text A207_Sushanta K Sarma_The Best of...Jl of rural development_Jul sep14.pdf Restricted to Registered users only Download (3MB)

Abstract

Ideological schisms in Indian micro-finance have often been interpreted at the level of practice through the adoption of different delivery models including the community empowering Self-Help Group (SHG) model and the financially efficient Joint Liability Group (JLG)model. While the SHG is a saving-led slow growth model and unique to India, JLG is a credit-led fast growth model, loosely based on the Grameen model of Bangladesh. The article describes the two models and strives to develop a comparison between them along several parameters. The paper argues that both models have their advantages depending upon external factors like competition, homogeneity within population, among other factors. Both models live up to their optimum promise when in alignment with organisational features like culture and its strength, leadership etc. Country like India is often afflicted by duality of external factors ranging from socially-driven and stratified social structures in rural areas to the financially-driven urban poor population. It is this duality that necessitates the existence of both the models, matching to the diversity of target population and characteristics of the implementing micro-finance organisation.

Item Type:	Article
Subjects:	Management Information Systems > Enterprise Resource Planning
Divisions:	General Management and Enterpreneurship
Depositing User:	Mr. Ramesh Kamath
Date Deposited:	10 Sep 2018 17:24
Last Modified:	11 Jan 2019 09:34
URI:	http://tapmi.informaticsglobal.com/id/eprint/41

Actions (login required)

View Item

Downloads