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A Literature Review: Self-help Group Bank Linkage Programme

Self-help group bank linkage initiative is aimed at providing access to Microfinance to people at the bottom of pyramid. These people lack collateral and formal financial institutions are wary to lend to them due to lack of collateral and information asymmetry. Group lending through social capital provides a panacea to the issue of lack of physical collateral. Despite all assertions, group lending is fraught with issues of institutional unsustainability, lack of financial literacy and lack of theory and understanding on Peer mechanism of selection and monitoring. This study utilizes the systematic review method to evaluate various studies in domain of Self-help group bank linkage. This study will contribute to theory building on Peer mechanism in domain of group lending. It will add to existing repository of literature reviews in domain of peer mechanism for Joint liability groups

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Abstract

Nishi Malhotra
Ph.D. Scholar, IIM Kozhikode

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