The broad vision of the program is to enable the poor households in accessing adequate formal credit at their doorsteps through their membership in SHGs.
The objective of the program:
Consumption smoothening or even servicing previous high cost debts
Support existing livelihoods
Finally, to implement Microcredit Plan (MCP), when households reach a stage where they can assume a higher degree of risk.
The SHG movement in the Andhra Pradesh started in 1998, built on the principles of thrift, self-help and internal lending. The credit worthiness of these groups, which are otherwise unbanked, having no collaterals, have been built on their group discipline, repayment culture and accumulated corpus funds; and this resulted in SHG Bank linkage programme, under which, SHGs are being provided with credit by service area banks as per Micro Credit Plans of SHGs. Started in 2000, so far, the groups have availed bank loans of over Rs.50 thousand crores.