In India, Microfinance has continued growing rapidly towards the main objective of financial inclusion, extending outreach to a growing share of poor households and to the approximately 80 percent of the population, which are yet to be reached directly by the banks. (Ghate Prabhu, 2009). Out of the two major models of Microfinance in India i.e. Self-Help Groups (SHGs)- Banks Linkage Programme (SBLP) and the Microfinance institution (MFI) model, Microfinance scene in India is dominated by Self-Help Groups (SHGs)- Banks Linkage Programme, aimed at providing a cost effective mechanism for providing financial services to the unreached poor. Linked not only to banks but also to wider development programmes, SHGs are seen to confer many benefits, both economic and social. SHGs enable women to grow their savings and to access the credit which banks are increasingly willing to lend. SHGs can also be community platforms from which women become active in village affairs, stand for local election or take action to address social or community issues. The SHG approach has been proved successful not only in improving the economic conditions through income generation but in creating awareness about health and hygiene, sanitation and cleanliness, environmental protection, importance of education and better response for development schemes.
