ABSTRACT

The banks are offering financial assistance to MFIs and SHGs in the form of loan. These loans are repayable to banks after specified period of time. The study was undertaken to study growth rate of loan disbursement between MFI-Bank Linkage and SHG-Bank Linkage in India and to study growth rate of loan outstanding between MFI-Bank Linkage and SHG-Bank Linkage in India. The present study is based on secondary sources of data. The study makes use of statistics such as arithmetic mean, standard deviation, co-efficient of variation and Compound Annual Growth Rate (CAGR) to analyze the data. Non parametric test viz. Man-Whitney U test has been used to draw inference on the framed hypotheses. It was observed that the CAGR of amount of loan disbursed to MFI during the period from 2007-08 to 2015-16 is 33.56 percent while the CAGR of total amount of loan disbursed to SHGs in India for the same period is 17.33 percent. The hypothesis testing proves that there is no significant difference in the growth rate of loan disbursement between MFI- Bank linkage and SHG-Bank Linkage program. The CAGR of amount of loan outstanding against MFI during the period from 2007-08 to 2015-16 is 32.07 percent while the CAGR of total amount of loan outstanding against SHGs in India for the period is 14.41 percent. The hypothesis testing proves that there is no significant difference in the growth rate of loan outstanding between MFI- Bank linkage and SHG-Bank Linkage program.

Keywords: MFIs, SHGs, SHG-Bank Linkage programme, CAGR, Man-whitney U test.